GoM on GST on Casinos will hear industry stakeholders on 23rd and 24th July
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On July 23 in Bengaluru and on July 24 in Goa, the ministerial panel on casinos, racetracks, and internet gaming will convene in order to hear from the gambling and horse racing industries on the taxes of their respective industries.
The GoM will likely hear from Bangalore Turf Club about a variety of racing-related topics, including GST-related concerns. According to individuals who spoke with FE, the GoM would likely visit casinos in Goa to have a firsthand look at how the industry runs.
On July 12, the GoM submitted tax concerns brought up by representatives of the sector over the anticipated tax rate rise on online skill gaming from 18 percent to 28 percent and concerns regarding casinos.
The deadline for the GoM to submit its final report is August 10. In order to discuss the panel's suggestions, the GST Council will probably get together in the third week of August. Conrad Sangma, the chief minister of Meghalaya, called the GoM to discuss the revenue concerns during the June 29 Council meeting in Chandigarh.
Re-examination was required in response to Goa's demand for a deeper understanding and more favorable handling of casinos. Goa has raised concerns about how the tax will be computed in cases where a portion of a token purchase was used for food and entertainment or the whole amount was not utilized in a casino and the remainder was returned to the counter.
In its initial report, the GoM suggested that online gaming be subject to a 28 percent tax on the whole value of any payment, regardless of its name, including any entrance fees paid by players for participation in such games without drawing a distinction between games of skill or chance, etc.
It said that for racetracks, GST should continue to be assessed at a rate of 28 percent on the entire amount of bets placed with bookmakers and pooled in the totalisator. In the case of casinos, GST will be imposed at a rate of 28% on the entire face value of the chips or coins that a player buys from the casino.
The GoM has said that after GST is charged on the face value of chips or coins purchased in casinos, no additional GST would be charged on the 28 percent value of bets put in each round of betting, including bets made with wins from prior rounds.
