New Delhi: The Goods and Services Tax (GST) Council's group of ministers (GoM) on online gambling, race courses and casinos has reportedly recommended levying of 28 percent GST on services like online gaming.
As per Zee Media sources, the GoM has taken a unanimous decision to recommend levying of 28% GST on online gaming, casinos, race courses. Reports further added that the GOM recommendation of GST levying is only on the initial betting and gaming amount as the GoM is not in favour of levying tax on every bet or the winning amount. The report of the GoM will be submitted in a couple of days.
Meghalaya Chief Minister Conrad Sangma has said, "we have decided that this report will be submitted to the Finance Minister. It is expected that this report will be discussed in the next GST Council."
Ankur Gupta, Practice Leader ( Indirect Tax), SW India, commenting on the matter said "In most countries, the online gaming industry is taxable more or less at par with the current taxability of 18%, therefore, it's a disadvantage for Indian game companies if the taxability moves to 28%."
"Now what has to be seen is the valuation of these services. It should be applicable only on margin/platform fee because in case it is applicable on the entire pool value then it would adversely impact the customers, as well as they, would get less playable value," he added.
(Reporter Inputs from Ambarish Pandey)
