GST Latest Update: GoM Submits Report On Taxation of Online Gaming, Casinos To FM Nirmala Sitharaman

The Group of Ministers (GoM), set up by the GST Council to look into the taxation of online gaming and casinos, has submitted its report to Finance Minister Nirmala Sitharaman, according to the panel’s chairman and Meghalaya Chief Minister Conrad Sangma. The GST Council is likely to take up the report in its meeting on Saturday (December 17).

“Presented the Second Report of the Group of Ministers (GoM) on casinos, race courses & online gaming to the Hon’ble Union Finance Minister, Smti. @nsitharaman Ji in New Delhi today,” the GoM’s chairman and Meghalaya Chief Minister Conrad Sangma said in a tweet on Thursday.

The Council, which is headed by the Union finance minister and comprises representatives of all states and UTs, is going to conduct its 48th meeting on Saturday (December 17) via videoconferencing.

Usually, the GST Council secretariat gives notice to members of the Council before tabling any agenda. The agenda for the Council meet so far did not include a discussion on online gaming. Now that the report has been submitted, it is likely that the Council may take it up for consideration.

The GoM, in its last meeting in November, had agreed on a 28 per cent GST on online gaming casinos and horse racing. However, in absence of consensus on whether the tax should be levied on only the fees charged by the portal or the entire consideration, including the bet amount received from participants, the GoM had decided to refer all suggestions to the GST Council for a final decision.

Currently, online gaming attracts 18 per cent GST. The tax is levied on gross gaming revenue, which is the fees charged by online gaming portals.

According to a CNBC-TV18 report attribnuting sources, GoM on GST on online gaming and gambling fails to arrive at a consensus. It also added that GoM was in broad agreement that the supply of actionable claims be taxed at 28 per cent. GoM fails to reach consensus as Goa bats for 18 per cent GST on platform fees/ service charge.

It also said Gujarat and Goa are of the view that the said activity be taxed on the platform fees. Maharashtra proposed providing suitable abatement for determining taxable value of supply of actionable claim.

The report also said GoM proposes a special mechanism to carve out escrow account for race courses & online gaming. The GoM also proposes escrow account to contain pooled prize money for payouts to winners.

(With Inputs from PTI)

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