Group of Ministers agree to levy 28% GST on casino, race course and online gaming

The Group of Ministers (GoM) has agreed to recommend hiking the GST rate on casino, race course and online gaming services to 28 per cent.

In a meeting held on May 2, the GoM discussed various aspects, including the possible GST rates and technicalities, in regard to these activities.

After the meeting, GoM Convener and Meghalaya Chief Minister Conrad K. Sangma said that the members were able to move forward to a large extent on issues related to rates, valuation on which the rate should be applied, and certain issues of online gaming were discussed in detail.

Sangma, who had led the GoM to study GST rates on Covid-related materials last year, said that the meeting also discussed whether there be a common or different GST rates on online gaming.

“Governments, several industries, stakeholders and the societies are to be involved in the operation of the casinos, race courses, and online gaming. Keeping all aspects in mind and considering the views of all stakeholders, we would decide the rates and other related matters,” he had told the media.

However, the recommendation is subject to the final approval of the GST council, which will discuss it and will take the final call.

Currently, the GST rate applicable on online games involving betting or gambling is 28%, and for on games not involving betting or gambling it is 18%. A tax rate of 18% is also levied on the commission collected by online gaming platforms for each game.

On horse racing, GST is levied at 28% on the total bet value.

(The one-stop destination for MSME, ET RISE provides news, views and analysis around GST, Exports, Funding, Policy and small business management.)

Download The Economic Times News App to get Daily Market Updates & Live Business News.

Source link

Spread the word!

Leave a Comment

Your email address will not be published. Required fields are marked *