GST council defers 28% tax on online gaming, casinos and horse racing
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GST Council has sent the proposal to levy a 28% tax on online gaming, casinos and horse racing back to a Group of Ministers. The GoM has been asked to submit its report by July 15 and it will be taken up in the next GST council meeting in Madurai in first week of August. Goa government had objected to the recommendations during the Gom proceedings. According to existing rules, the three activities are to be taxed without differentiation at 28%.
The GoM on the three activities has deferred the implementation of the proposed GST regime. The stakeholders claim that the online gaming industry could become a $5 billion industry by 2025. The All India Gaming Federation, the E-Gaming Federation and the Federation of Indian Fantasy Sports are against the proposal. They claim it would be catastrophic for the industry. It is as absurd as making a stock broker pay GST on entire traded value of stocks. for example. For casinos, it was proposed that GST should be charged at full face value.
