Gaming, casino, and horse racing will soon be subject to a 28 percent GST.
The Goods and Services Tax Council appointed a group of ministers (GoM) to look at the taxation of online gaming, racing, and casinos has agreed to levy a 28 percent GST.
Casino, horse racing, and online gaming services are currently subject to 18 percent GST.
The GoM has unanimously agreed to recommend a 28 percent GST on internet gaming, casinos, and racetracks. According to reports, the GOM has recommended that GST be levied solely on the upfront betting and gaming amount, as the GoM is opposed to taxing every bet or winning amount. The GoM’s report will be submitted in the next days.
The GoM is a group of state ministers appointed by the Centre in May 2021 to optimize the assessment of casino, online gaming portal, and racecourse services for GST purposes.
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.”.
An association of online skill-based gaming platforms has petitioned the government to keep GST at the current rate for the business, which employs approximately 45,000 people and has 400 players.
E-sports, fantasy games, rummy, poker, and chess are examples of online skill-based games that can be played for free or with platform fees.