The group of ministers (GoM) formed to recommend GST reforms concerning casinos, online gaming, and horseracing will only review the valuation aspect and not the already recommended 28% rate recommended for these activities, reported ET citing people aware of these discussions.
“There is no reconsideration of the 28% for online gaming and horse races. It was not even discussed in the council meeting. It is just about casinos, following a request from Goa,” a person was quoted by ET.
The GoM formed in 2021 recently submitted its report which was discussed in the GST Council meeting in the last week of June.
Goa which highly relies on casino revenues raised objections on the valuation aspect. On representation of Goa Minister Mauvin Godinho, the Council referred the matter again to the GoM and gave time till July 15 to submit the revised report.
Goa has also raised concerns over online casinos owned by foreigners, which manage to escape the tax net, and sought more nuanced discussion.
As per the reports, the GoM is unlikely to offer any concessions to online gaming, even as the gaming industry is demanding that skill-based games be treated differently. “Only the issue of taxation of casinos will be discussed when the GoM meets next,” another person was quoted by ET.
The GST Council will at its next meeting in Madurai, expected in the first week of August, take up the final report of the GoM.