Casinos, online gaming: GoM on board for GST hike to 28%

The GoM will then finalise the method for valuation of these services. At present, services of casino, horse racing and online gaming attract 18 per cent GST,

The panel has directed the officers to look into the modalities for valuation for levying the tax, after which the final meeting of the panel will take place by mid-May, West Bengal Finance Minister Chandrima Bhattacharya said.

The Group of Ministers has arrived at consensus of hiking the tax rate to 28 per cent on casinos, race courses and online gaming under the Goods and Services Tax (GST) regime. The panel has directed the officers to look into the modalities for valuation for levying the tax, after which the final meeting of the panel will take place by mid-May, West Bengal Finance Minister Chandrima Bhattacharya said.

“There is consensus among states that all these three — online gaming, casinos and horse racing — the highest rate of tax of 28 per cent should be levied. The question now is on what will be the valuation on which the tax will be levied. For this purpose, the financial aspect, the legal aspect will be looked into by the group of officers of the fitment committee and they will be giving a report by 10 days. Then again in mid-May another meeting will be called by the Chairman (of the GoM),” Bhattacharya, who is a member of the GoM, told The Indian Express.

Explained | Why online gaming could now attract a higher GST of 28%

The GoM will then finalise the method for valuation of these services. At present, services of casino, horse racing and online gaming attract 18 per cent GST.

The government had in May last year set up Group of Ministers for better valuation of services of casinos, online gaming portals and race courses for levying GST. The terms of reference for the committee included valuation of services provided by casinos, race courses and online gaming portals, and taxability of certain transactions in a casino taking into account the existing legal provisions and orders of courts on related matters.

The committee was also to suggest need for any change in the legal provisions to adopt better means of valuation of the services of casinos, race course and online gaming and impact on other similar services like lottery.

The GoM, headed by Meghalaya Chief Minister Conrad Sangma, met on Monday and discussed the applicable GST rate on these three services. The report of the GoM is likely to be taken up in the next meeting of the GST Council expected later this month.

Read | Rs 1.68 lakh crore in April, GST collection soars to all-time high

Other state ministers in the 8-member GoM include Maharashtra Deputy Chief Minister Ajit Pawar, Gujarat Finance Minister Kanubhai Patel, Goa Panchayati Raj Minister Mauvin Godinho, Tamil Nadu Finance Minister P Thiaga Rajan, Uttar Pradesh Finance Minister Suresh Khanna and Telangana Finance Minister T Harish Rao.

Aanchal Magazine

Aanchal Magazine is Senior Assistant Editor with The Indian Express and reports on the macro economy and fiscal policy, with a special focus on economic science, labour trends, taxation and revenue metrics. With over 13 years of newsroom experience, she has also reported in detail on macroeconomic data such as trends and policy actions related to inflation, GDP growth and fiscal arithmetic. Interested in the history of her homeland, Kashmir, she likes to read about its culture and tradition in her spare time, along with trying to map the journeys of displacement from there. ... Read More