A group of ministers (GoM) tasked by the Goods and Services Tax Council to look into taxation of online gaming, races and casinos is likely to suggest a flat rate of 28%.
A final recommendation on the rate, as also on whether the levy should be on the gross gaming revenue or per transaction, is likely to be made when the GoM meets again next week, people privy to the matter told ET.
The GoM, headed by Meghalaya chief minister Conrad Sangma, met on Monday and discussed the valuation of services provided by casinos and online gaming.
"While there is a broad consensus on a flat 28% tax rate, there was no consensus on what should be levied on - gross gaming revenue or on the basis of per transaction. Also, a few members flagged industry concerns that learning-based gaming should remain in the 18% slab," one of the people said.
The GoM will meet next week after that they will submit the report to the council, which will take the final call.
Currently, the
GST rate applicable on online games involving betting or gambling is 28%, and for on games not involving betting or gambling it is 18%. A tax rate of 18% is also levied on the commission collected by online gaming platforms for each game.
On horse racing, GST is levied at 28% on the total bet value.
"Their (gaming industry's) demand is that they should be taxed on gross gaming revenue and not on the transactions taking place or the number of times they (users) play on different games," Goa's transport minister Mauvin Godinho, who is a GoM member, said.
Source Name:-Economic Times