The Group of Ministers (GoM) on casinos, online gaming and horse racing headed by Meghalaya Chief Minister Conrad Sangma will meet on Tuesday (July 12) to finalise its report on valuation modalities taxing the activities that are akin to gambling. Uttar Pradesh Finance Minister Suresh Kumar Khanna, who is a member of the GoM, while addressing a gathering in a FICCI organised GST conference said the panel will meet on July 12.
The GST Council, comprising the Centre and state finance ministers in a meeting last month, had referred back the report to the GoM for further discussion and set a deadline of July 15 for the submission of the final report.
The GoM in its report highlighted that horse racing, online gaming or casino, are all part of betting and gambling, and 28 per cent GST should be levied on them.
The valuation mechanism proposed by GoM was opposed by Goa which strongly relies on gaming revenues.
Ever since the implementation of GST, there has been a lacunae on the applicability of GST to various skill and chance games. The valuation of supplies in the casino and gaming industry has been a contentious issue. In many instances, the operators are compelled to pay 28% GST on entire bet amounts while commission or processing charges are the only amounts they are finally entitled to.
As per reports, the GoM recommended that the tax would be levied on the full face value of the chips/coins purchased from the casino by a player.