Ministers' panel unanimous on 28 pc GST on casino, online gaming, horse racing: West Bengal FM
However, a call on whether the tax should be levied on gross or net valuation would be taken after further deliberations at the officer level.The Group of Ministers GoM will decide on the method of valuing the services.At present, services of casino, horse racing and online gaming attract 18 per cent GST Goods and Services Tax.
The panel of state finance ministers is unanimous on hiking the GST rate on casino, race course and online gaming services to 28 per cent, West Bengal finance minister Chandrima Bhattacharya said on Monday. However, a call on whether the tax should be levied on gross or net valuation would be taken after further deliberations at the officer level.
The Group of Ministers (GoM) will decide on the method of valuing the services.
At present, services of casino, horse racing and online gaming attract 18 per cent GST (Goods and Services Tax). The government had in May last year set up a panel of state ministers for better valuation of services of casinos, online gaming portals and race courses for levying GST.
The GoM, headed by Meghalaya chief minister Conrad Sangma, met on Monday and discussed the applicable GST rate on these three services.
''There was a clear consensus that the highest rate of 28 per cent should be levied on all the three services — casino, race course and online gaming.
''The officer's committee will deliberate further and give report within 10 days on whether tax would be levied on gross or net value, after which the GoM will meet again and take a call,'' Bhattarcharya said.
She said the decision of the GoM would take into account businesses involved in these services, society and other stakeholders.
The report of the GoM is likely to be taken up in the next meeting of the GST Council expected later this month.
Other state ministers in the 8-member GoM include Maharashtra deputy chief minister Ajit Pawar, Gujarat finance minister Kanubhai Patel, Goa panchayati raj minister Mauvin Godinho, Tamil Nadu finance minister P Thiaga Rajan, Uttar Pradesh finance minister Suresh Khanna and Telangana finance minister T Harish Rao.
AMRG & Associates senior partner Rajat Mohan said valuing services for online gaming, horse racing and casinos has been a matter of frequent litigation and harassment for the industry.
''Hopefully future tax rules would arrest the multiple interpretations assigned by tax offices around the country and align the taxation to global best practices allowing the sector to flourish,'' Mohan added.
(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)