GoM recommends 28% GST to be levied on casinos, online gaming horse racing

As the Meghalaya Chief Minister Conrad Sangma-headed Group of Ministers (GoM) held the final meeting addressing the issue of online gaming platforms coming under the ambit of taxation, it is believed that 28% GST will be levied on casinos, online gaming and horse racing, irrespective of whether it is a game of skill or chance.

Currently, the online gaming sector witnesses an 18% GST being levied on the gross revenue earned from the fees charged by online gaming platforms.

However, in the absence of a consensus on whether the tax should be levied only on the fees charged by the portal or the entire consideration, including bet amount received from participants, the GoM has decided to refer all the suggestions to the GST Council for a final decision.

The state finance ministers' panel will be submitting its report to the GST Council next week, Meghalaya Chief Minister Conrad Sangma said.

Once formally approved by the federal GST Council, which is chaired by Finance Minister Nirmala Sitharaman, the proposal, according to government sources, will bring the GST on online gaming in India at par with betting or gambling, which already carry a 28% GST.

The GoM had earlier submitted a report to the council in June wherein it had suggested a 28 per cent GST on the full value of the consideration, including the contest entry fee, paid by the player without making a distinction such as games of skill or chance. However, the council had then asked the GoM to reconsider its report.

The eight-member group of state finance ministers, GoM, include Thiaga Rajan, Finance Minister, , Tamil Nadu; Devendra Fadnavis, Deputy Chief Minister, Maharashtra; Chandrima Bhattacharya, Finance Minister, West Bengal; Kanubhai Desai, Finance Minister, Gujrat; Suresh Kumar Khanna, Finance Minister, Uttar Pradesh; T Harish Rao, Finance Minister, Telangana; and Mauvin Godinho, Goa Industries Minister.

Tamil Nadu’s Rajan also said, "There was already a report submitted once. That report will be the basis of whatever the new report is".

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