28% GST likely on casinos, online gaming, horse races on gross revenue: Report
The all-powerful GST Council at its meeting in Chandigarh this week is expected to vet a proposal of the panel of state finance ministers on levying 28% goods and services tax (GST) on online gaming, casinos and horse racing.
The 47th meeting of the GST Council, headed by Union Finance Minister Nirmala Sitharaman and comprising representatives of all states and UTs, is scheduled for 28-29 June. The Council is meeting after a gap of six months.
The GST Council will also be presented two reports of Group of state finance ministers.
The Group of Ministers, headed by Meghalaya Chief Minister Conrad Sangma, has recommended that online gaming should be taxed at full value of the consideration, including contest entry fee paid by the player on participating in the game.
In case of race courses, the GoM has suggested that GST be levied on the full value of bets pooled in the totalisators and placed with the bookmakers.
In casinos, GoM recommended that the tax would be levied on the full face value of the chips/coins purchased from the casino by a player. No further GST would apply on the value of bets placed in each round of betting, including those placed with winnings in previous rounds.
Also, the GoM suggested that 28% GST be levied on entry/access fees into casinos, which compulsorily includes foods/beverages etc.
However, optional supplies, made independently of the entry tickets, would be taxed at the rate applicable on such supplies, sources added.
At present, services of casinos, horse racing and online gaming attract 18% GST. The GoM would decide on the method of valuing the services.
The Government had in May 2021 set up a panel of state ministers for better valuation of services of Casinos, online gaming portal and race courses for levying GST.
