GST Council meet in July: Taxation on online gaming, racing, casinos to be discussed

The Goods and Services Tax (GST) Council, which is scheduled to meet on July 11, is scheduled to take up online gaming, casinos and horse racing and discuss reports submitted by the Group of Ministers, a government official aware of the matter told Business Today.
The official added that the GST Council may not consider any major rate rationalisation exercise, including slashing of GST rate on cement. 

The report was not taken up at the 49th meeting of the council in February 2023 as the chair of GoM, Meghalaya CM Conrad Sangma, could not attend because of the elections in the state. There is no consensus on how to tax online games and whether to consider them as games of skill or games of chance.

Currently, online betting and gambling attract 28 per cent GST, irrespective of whether it is a game of skill and chance. Other games attract an 18 per cent levy on gross gaming revenue (GGR).

The revised Finance Act of 2023, followed by the IT Intermediary Amendment Rules notified by the Ministry of Electronics and Information Technology, has given the online gaming industry the confidence that the government will stick with 18 per cent GST.

Stakeholders have been worried about imposition of 28 per cent GST on GGR as that would lead to a significant rise in tax, which would have a dual impact on the business and gamers. The income tax on gamers has been separately notified in Finance Act 2023 — TDS of 30 per cent to be deducted from net winnings in the user account at the end of the financial year.

The Council may reconstitute the GoM on rate rationalisation and will take up items where correction of inverted duties is still pending.

The 50th meeting of the GST Council will be held on 11th July, 2023 at Vigyan Bhawan, New Delhi, the GST Council said in a tweet on Thursday.