The ministerial panel on casino, race course and online gaming will meet on Tuesday to finalise its report on taxing these activities, ahead of the Goods and Services Tax (GST) Council meeting in the first week of August, Uttar Pradesh finance minister Suresh Kumar Khanna said on Friday while speaking at an industry body Ficci event here.
The Council, which recently asked the group of ministers (GoM) to review its report once more, will consider tax rate increase on online skill gaming from 18% to 28% to bring it at par with other activities akin to gambling and taxation issues related to casinos in its next meeting at Madurai.
The ministerial panel convened by Meghalaya chief minister Conrad Sangma, in which Khanna is a member, were asked to submit the final report by July 15.
The GoM in its report presented to the Council on June-28-29 has recommended that in 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.
Following Goa minster Mauvin Godinho’s appeal that casinos need better understanding and treatment of casinos should be different, the GoM was asked to review its report once more.
