[ad_1]
The GST Council on Wednesday deferred decision on levying a 28 per cent tax on casinos, online gaming, horse racing and lottery pending more consultations with stakeholders, Union Finance Minister Nirmala Sitharaman said.
A group of ministers headed by Meghalaya Chief Minister Conrad Sangma has been asked to consider submissions of stakeholders again on the valuation mechanism and submit its report by July 15, she told reporters here.
The council will meet again in the first week of August to decide on the issue, she said.
A two-day meeting of the panel considered a report of the GoM but deferred a decision as Goa and some others wanted to make more submissions.
The GoM had recommended that online gaming should be taxed at the full value of the consideration, including the contest entry fee paid by the player on participating in the game.
In cases of race courses, it had suggested that GST be levied on the full value of bets pooled in the totalisators and placed with the bookmakers.
It also recommended that no distinction should be made on grounds of game of skill or game of chance for the purpose of the levy of GST and should be taxed at the highest rate of 28 per cent.
The issues of extension of GST compensation mechanism for states and a highest 28 per cent tax rate on online gaming, casinos and horse racing is slated for discussion at the second day of the GST Council meeting in Chandigarh, as per a PTI report.
GST Council Meeting – What happened on 1st day?
– On the first day, the 47th GST Council chaired by Union Finance Minister Nirmala Sitharaman and comprising state counterparts, decided to tweak tax rates of some goods and services, including bringing pre-packed and labelled food items under the tax net to check evasion.
– Besides, a host of procedural and legal changes, including monthly GST return form, and mechanisms for dealing with high-risk taxpayers were also discussed.
– While suggesting a uniform tax rate and valuation method for these activities, the Group of Ministers, headed by Meghalaya Chief Minister Conrad Sangma, said for the purpose of levy of GST, no distinction should be made in these activities merely on the ground that an activity is a game of skill or of chance or both.
– The GoM has recommended that online gaming should be taxed at full value of the consideration, including contest entry fee paid by the player on participating in the game.
– In case of race courses, the GoM has suggested that GST be levied on the full value of bets pooled in the totalisators and placed with the bookmakers.
– In casinos, GoM recommended that the tax would be levied on the full face value of the chips/coins purchased from the casino by a player. No further GST would apply on the value of bets placed in each round of betting, including those placed with winnings in previous rounds.
LIVE: GST Council Meeting – What’s slated for today i.e. 2nd day of Chandigarh meet?
The two-day meeting of the GST Council is being attended by Union Minister of State for Finance Shri @mppchaudhary, besides Finance Ministers of States & UTs and Senior officers from Union Government & States. (2/2)@PIBChandigarh
— Ministry of Finance (@FinMinIndia) June 29, 2022
– The Day-2 of GST Council Meeting will see deliberations on issues like compensation to states beyond June 2022, and a Group of Ministers (GoM) report on 28 per cent tax on online gaming, casinos and horse racing, the PTI report added.
(With PTI inputs)
[ad_2]
Source link
