Meet to tweak taxes for online gaming, casinos
The Council, chaired by Finance Minister Nirmala Sitharaman and comprising state ministers, in its last meeting on July 11 approved levying 28 pc tax on full face value of bets in online gaming, casinos and horse racing.
NEW DELHI: The GST Council in its meeting on Wednesday is likely to finalise the modalities for determination of supply value in online gaming and casinos for levying 28 per cent tax.
The Council, chaired by Finance Minister Nirmala Sitharaman and comprising state ministers, in its last meeting on July 11 approved levying 28 pc tax on full face value of bets in online gaming, casinos and horse racing.
Subsequently, the Law Committee, comprising Centre and state tax officers, have prepared draft rules for consideration of the GST Council with regard to computation of supply value for tax purposes.
The committee has suggested insertion of a new rule under which value of supply of online gaming would be the total amount deposited with the online gaming platforms by way of money or virtual digital assets on behalf of the player. With respect to casinos, the committee has proposed that the supply value would be the amount paid by a player for purchase of tokens, chips, coins or tickets. The council will discuss the committee’s recommendations in a virtual meeting on Wednesday. The All India Gaming Federation, had termed the decision by the GSTC as “unconstitutional, irrational, and egregious”.