The ministerial panel on casino, race course and online gaming will meet on July 23 in Bengaluru and on July 24 in Goa to get industry perspective on taxation of horse racing and casinos, respectively.
Bangalore Turf Club will likely make a presentation to the GoM on various aspects of the racing and issues related to GST. In Goa, the GoM will likely visit casinos to get a first-hand experience of how the business operates, sources told FE.
On July 12, the GoM referred the taxation issues raised by the industry representatives on the proposed tax rate increase on online skill gaming from 18% to 28% and issues related to casinos.
The GoM has been given time till August 10 to submit its final report. The GST Council will likely meet in the third week of August to consider the recommendations of the panel.
In the Council meeting at Chandigarh on June 29, the GoM convened by Meghalaya chief minister Conrad Sangma was directed to re-examine the taxation issues.
The re-examination was necessitated by Goa’s plea for better understanding and differential treatment of casinos. Goa has flagged issues such as how the tax will be calculated if the full amount of token purchased is not utilised in a casino and the balance returned at the counter or some portion was used for food and entertainment.
The GoM, in its first report, has recommended that in the case of online gaming, the activities should be taxed at 28% on the full value of the consideration, by whatever name such consideration may be called, including contest entry fee, paid by the player for participation in such games without making a distinction such as games of skill or chance etc.
In case of race courses, it said GST should continue to be levied at the rate of 28% on the full value of bets pooled in the totalisator and placed with the bookmakers. In case of casinos, GST be applied at the rate of 28% on full face value of the chips/coins purchased from casino by a player. In case of casinos, once GST is levied on purchase of chips/coins (on face value), no further GST to apply on the 28% value of bets placed in each round of betting including those played with winnings of previous rounds, the GoM has said.