The GST Council meeting is likely to be held virtually on August 2 and the agenda is expected to include a final decision on the proposed 28 per cent GST on online gaming, casinos and horse racing.
Less than a month after the 50th GST Council meeting, the Goods and Services Tax Council comprising state finance ministers, is likely to meet on August 2.This is as per sources that Financial Express Online spoke to. The meeting is likely to be held virtually and the agenda is expected to include a final decision on the proposed 28 per cent GST on online gaming, casinos and horse racing.
It is expected that this meeting will bring forth specific details on the rate and the methodology that would be adopted for levying tax on the segments.
The Group of Ministers, in its second report has recommended that since no consensus could be reached on whether the activities of online gaming, horse racing and casinos should be taxed at 28% on the full-face value of bets placed or on the GGR, the GST Council may decide. The GST Council had deliberated on the issues and recommended tax will be applicable on the face value of the chips purchased in the case of casinos, on the full value of the bets placed with bookmaker/totalisator in the case of Horse Racing and on the full value of the bets placed in case of the Online Gaming.
While the government had mentioned that the proposed tax is not to harm the industry, the decision raised concerns from several sectors and many industry stakeholders had voiced their worries.
Speaking to Anant Goenka, Executive Director, Indian Express Group and Anil Sasi, National Business Editor, The Indian Express at the Express Adda, Minister of State for Electronics, IT, Skill Development and Entrepreneurship, Rajeev Chandrasekhar, on July 20 had said that the “New framework of permissible online gaming may help sift genuine players relatively easily.”
The last council meeting also saw an increase in GST compensation cess on SUVs and MUVs as well.
Source:financialexpress.com