GST Council defers tax on casinos, lottery; GoM to re-deliberate by July 15
30/06/2022
new delhi, jun 29: The GST Council on Wednesday deferred decision on levying a 28 per cent tax on casinos, online gaming, horse racing and lottery pending more consultations with stakeholders, Union Finance Minister Nirmala Sitharaman said.
A group of ministers headed by Meghalaya Chief Minister Conrad Sangma has been asked to consider submissions of stakeholders again on the valuation mechanism and submit its report by July 15, she told reporters here.
The council will meet again in the first week of August to decide on the issue, she said.
A two-day meeting of the panel considered a report of the GoM but deferred a decision as Goa and some others wanted to make more submissions.
The GoM had recommended that online gaming should be taxed at the full value of the consideration, including the contest entry fee paid by the player on participating in the game.
In cases of race courses, it had suggested that GST be levied on the full value of bets pooled in the totalisators and placed with the bookmakers.
"Whether it is horse-racing or online gaming or casinos, the common thread that the Committee highlighted was they are part of betting and gaming. In other words, they are essentially gambling. There may be an element of skill in it or an element of chance in it. But essentially, all the three are gambling," Sitharaman said.
Sangma said the Goa Finance Minister had requested him to let him present his views on GST on casinos at the Council meeting and it agreed to hear again on online gaming and others.
The GoM will submit its report on July 15 and it will be discussed at the next GST Council meeting to be held in Tamil Nadu's Madurai, the home town of both Sitharaman and Tamil Nadu Finance Minister Palanivel Thiaga Rajan.
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