GST Council To Finalize 28% Tax On Online Gaming And Casinos
The 51st GST Council meeting will be presided over by Union Finance Minister Nirmala Sitharaman by videoconference on Wednesday, August 2, at 4 p.m.
The GST Council is expected to decide during the meeting how to calculate the supply value in online gaming and gambling in order to impose a 28 percent tax.
The meeting would be attended by senior officials from the Union government and states, as well as finance ministers from the states and UTs (with legislature), according to a tweet from the finance ministry.
The Council, which consists of state ministers and is presided over by Union Finance Minister Nirmala Sitharaman, approved a 28% tax on the whole face value of wagers made in online gaming, casinos, and horse racing at its most recent meeting on July 11.
The Law Committee, made up of federal and state tax officials, then created draft regulations on the calculation of supply value for taxation purposes for the GST Council to review.
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The committee has proposed the addition of a new rule that would define the value of supply of online gaming as the entire sum that the player has placed with the online gaming platforms in the form of money or virtual digital assets.
The committee has suggested that, with regard to casinos, the supply value would be the sum paid by a player for the acquisition of tokens, chips, coins, or tickets.
On Wednesday, the council will convene virtually to debate the committee’s recommendations.
The gaming sector has aggressively opposed the 28% tax on internet gambling, calling the decision “murder,” “disappointing,” and “catastrophic.”
The GST Council’s decision was dubbed “unconstitutional, irrational, and egregious” by the All India Gaming Federation (AIGF), which includes gaming platforms like Nazara, GamesKraft, Zupee, and Winzo.
In its 50th meeting on July 11, the GST Council resolved to tax internet gambling, horse racing, and casinos by 28%.
The finance ministry had stated in a statement on July 11, “Tax will be applicable on the face value of the chips purchased in cases of casinos, on the full value of bets placed with bookmaker/totalisator in cases of horse racing, and on the full value of bets placed in cases of online gaming.”
