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GST Council Meeting Delayed as GoM on Online Gaming, Casinos & Horse Racing is Yet to Finalise Its Report

GST Council Meeting
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  • Attreyee Khasnabis September 19, 2022
  • 2 Minutes Read

The 48th meeting of the GST Council has tentatively been postponed to next month as two Group of Ministers (GoM) are yet to submit their reports. The meeting is to take place in Madurai, Tamil Nadu. The GOM on GST in online gaming, casinos, and horse racing headed by Meghalaya Chief Minister Conrad Sangma has requested an extension as they are yet to receive a legal opinion on the applicability of GST on online gaming and horse racing.

The report by another GoM headed by Haryana Deputy Chief Minister Dushyant Chautala on GST Appellate Tribunals is also delayed. As decided during the last meeting of the GST Council, the Madurai meeting will have the limited agenda of deliberating upon two GoM reports. It was also proposed to hold the meeting in the first week of August.

 

Usually, the GST Council meets at least once in three months. The last meeting took place in June. However, it is not the first time a three-month period will end without a meeting. Earlier, there was a gap of over six months between the 42nd and the 43rd GST Council meeting.

In its last meeting, held on September 5, the GoM on online gaming and horse racing indicated that it is open to recommending different rates and mechanisms to calculate GST for the three gaming sectors and was going to submit the final report within 7-10 days (by September 15). However, there is no word on a new deadline.

The GoM is reworking its report after the GST Council said it should fine-tune its recommendation. In the earlier report, the GoM recommended a uniform 28% GST on online gaming, casinos, and horse racing. For valuation, in the case of online gaming, it suggested GST be levied on the total value of the consideration by whatever name, including the contest entry fee paid by the player, without making any distinction between games of skill or chance.

In the case of casinos, GST was recommended to be applied to the total face value of the chips/coins purchased from the casino by a player. For horse racing, GST was proposed at 28% on the total value of bets pooled in the totalisator and placed with the bookmakers.

But these recommendations are likely to undergo changes as there have been several court rulings.

The delay in providing clarifications on GST aspects, industry experts say, could hurt the nascent gaming industry, estimated to become a $5 Billion market by 2025.

This is a developing story. Keep following PokerGuru for all the latest updates!

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