Ministerial panel on GST levy on casinos, online gaming and race courses likely to submit report tomorrow

Representative image.

The Group of Ministers (GoM), appointed by the Goods and Services Tax (GST) Council to recommend taxation rates on casinos, online gaming and race courses, is likely to submit its report on July 12, CNBC TV18 learnt from sources.

The GoM, headed by Meghalaya Chief Minister Conrad Sangma, was given a period of 15 days to finalise the report at the GST Council meeting held on June 28-29.

In May, the GoM members had reportedly reached a consensus to levy a 28 percent tax on online gaming, casinos and race courses.

A PTI report on July 8 said the ministerial panel has 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 the case of racecourses, the GoM has suggested that GST be levied on the full value of bets pooled in the totalisators and placed with the bookmakers, it added.

In casinos, the GoM recommended that the tax would be levied on the full face value of the chips/coins purchased from the casino by a player, the PTI report noted, adding that no further GST would apply to the value of bets placed in each round of betting, including those placed with winnings in previous rounds.

When the Council was deliberating the GoM report in its meeting held on June 28-29, Goa Industries Minister Mauvin Godinho reportedly highlighted that there was a need for greater detailing and understanding of why casinos require a different treatment in taxation compared to horse racing and online gaming.

Subsequently, the council gave time for further consultation and mandated the GoM to finalise its report by July 15.

The other state ministers in the eight-member GoM include Gujarat Finance Minister Kanubhai Patel, Tamil Nadu Finance Minister P Thiaga Rajan, and Telangana Finance Minister T Harish Rao.

According to CNBC TV18, the GoM on rate rationalisation, headed by Karnataka Chief Minister Basavaraj Bommai, will also meet on July 12 to hold deliberations on rates and slabs. The panel was given a three-month extension in the deadline to submit their report by the GST Council, in the meeting held around two weeks ago.

(With PTI inputs)