GST Council to discuss law changes to facilitate provision for GST tribunals

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The Goods and Service Taxes (GST) Council is set to discuss law changes to facilitate provision for setting up GST tribunals, sources told CNBC-TV18. The Council will also discuss a report by a Group of Ministers (GoM) on online gaming, casinos and race courses.

The GoM has recommended imposition of 28 percent GST on casinos, race courses, online gaming and lottery should be uniform both in rates and valuation norms. It said that for the purpose of the levy, no distinction should be made for the activities on grounds of game of skill or game of chance.

It recommends that in the case of online gaming, the full value of consideration will include contest entry fee, paid by the player for participation etc, while in the case of Race Courses, the full value of bets pooled in the totalisator and placed with bookmakers should be considered.

In case of casinos, the full face value of chips or coins purchased from a casino by players will be considered. Once GST is levied on the purchase of chips or coins (on face value), no further tax will apply on the value of bets placed in each round of betting, including those played w/winnings of previous rounds.

Further, the entry fee to casinos including the price of one or more other supplies such as food and beverages, are recommended at 28 percent GST. And any other additional service or optional supplies made independently of the entry ticket shall be taxed at the rates as applicable on such supplies.