The GST Council, which is scheduled to meet next week, is likely to discuss the group of ministers (GoM) report on online gaming, casinos and race courses, said CNBC-TV18.
Valuation | In the case of online gaming, the full value of consideration, including contest entry fee, paid by the player for participation etc.
▶️ In the case of Race Courses, the full value of bets pooled in the totalisator and placed with bookmakers
— CNBC-TV18 (@CNBCTV18Live) June 26, 2022
The GoM which was appointed by the GST Council last year to suggest ways for augmenting revenue by rationalising tax rates and correcting anomalies in the tax structure has recommended that the imposition of GST on casinos, race courses, online gaming and lottery should be uniform both in rates and valuation norms, said a report by CNBC-TV18.
It also recommended that no distinction should be made on grounds of the game of skill or game of chance for the purpose of the levy of GST. The panel added that the rate of GST on all such activities should be 28 per cent, they said. Currently, skill games are taxed at 18%.
The recommendations are as follows:
- The imposition of GST on casinos, race courses, online gaming and lottery should be uniform both in rates and valuation norms
- For the purpose of levy of GST, no distinction should be made on grounds of the game of skill or game of chance
- The GST rate is to be hiked from 18 per cent to 28 per cent on all activities.
On the valuation, GoM said in the case of online gaming, it should be the full value of consideration, including contest entry fee, paid by the player for participation; in the case of race courses, it should be the full value of bets pooled in the totalisator and placed with bookmakers. It also said that the valuation for casinos, should be the full face value of chips/ coins purchased from a casino by a player, sources were quoted saying by CNBC TV18.
Earlier, the Group of Ministers on lottery, formed in January 2019, in its report mentioned that it received miscellaneous representations similar to a lottery. It recommended that the rate and valuation issues of casinos, horse racing, online gaming and betting may be referred to Fitment/Law Committee, and then taken to GST Council, either directly or through GoM as approved by the Union Finance Minister.