Gambling to get costly? State finance ministers recommend 28% GST on online gaming, racecourses, and casinos
India Today
A group of state finance ministers has recommended levying 28% GST on online gaming, racecourses, and casinos. The recommendation, along with others, will now be sent to the GST Council for its approval.
A group of state finance ministers set up to explore the quantum of GST and mode of taxation on casinos, racecourses, and online gaming met in Delhi on Wednesday, May 19, and finalised its recommendations. These will be sent to the Goods & Services Tax (GST) council for approval.
Sources in the group said that the recommendations included a GST of 28% on online gaming, racecourses, and casinos.
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The group also finalised the mode of taxation for these services. Sources said that the tax will be imposed on initial betting and the gaming amount. That means that tax will be levied on the gross gaming revenue, or GGR, which is equivalent to sales or revenue, not the earnings. The group is said to have proposed that casinos be brought under the 28% tax slab while the tax will be only on the amount paid at the time of buying the betting instruments at entry and not on every betting transaction.
In a similar formula for horse racing, there will be a 28% tax on the entire betting amount and not the winnings.
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The head of the group of ministers, Meghalaya Chief Minister Conrad Sangma, after the meeting, said that a consensus had been arrived upon on the issue of taxing casinos, racecourses and online gaming.