This Goods and Services Tax (GST) Council’s 50th meeting on July 11 will likely take up the long-pending issue of taxation of online gaming and a proposed reduction of the GST rate on millet-based health products.
Sources said the upcoming meeting in the city will have limited agenda as no major tax rate rationalisation is expected until general elections are over in May next year.
The Council will discuss both the reports of the group of ministers (GoM) on online gaming and whether to go for a 28% GST rate on the full value including prize money, both for skilled and unskilled games, from 18% only on platform fee now.
The issue of taxation of online gaming has been hanging on fire for the past two years with a group of ministers (GoM) on casinos, racecourses and online gaming failing to arrive at a consensus on changing its earlier recommendation of a uniform 28% tax on the full value of the consideration on all the three.
There are two varying perspectives on the politico-economic issue involving online gaming. Optically, online gaming is addictive, and it has an adverse influence on the youth and society, a senior official said. On the other hand, analysts argue that online gaming is a fledgling industry, it employs a lot of people in the back end and that the technology-driven futuristic sector should not be allowed to die.
On taxation of millet, the Fitment Committee of GST has worked out a mechanism to reduce tax on millet-based health products depending on the incidence of millets in the products. Currently, millet-based health products attract 18% GST, which may be brought down to 5% or nil.
India is the largest producer and second largest exporter of millet in the world. India grows several types of millet such as jowar, ragi, bajra, kuttu, ramdana, kangni, kutki, kodo, cheena, and sama. These have a number of health benefits and have been an integral part of India’s food for centuries.