GoM on online gaming, casinos, horse racing broadly agrees on 28% GST; Goa differs

economictimes.indiatimes.com:

GST Council on July 11. Also, the Council, chaired by the Union Finance Minister and comprising state counterparts, has to decide on whether these three activities fall under the category of actionable claim of betting and gambling, sources added. The Group of Ministers, convened by Meghalaya Chief Minister Conrad Sangma, has members from eight states-- West Bengal, Uttar Pradesh, Goa, Tamil Nadu, Telangana, Gujarat and Maharashtra.

Of the eight states, West Bengal and Uttar Pradesh were of the view that a 28 per cent GST should be levied on all three supplies on full face value of the bets placed. Gujarat, however, was of the view that 28 per cent tax should be levied on platform fees. Meghalaya was of the view that 28 per cent tax should be levied on GGR or platform fees or commission charged by casinos, online gaming and horse racing.

It also suggested that a special mechanism to carve out an 'Escrow Account' for the purpose of pooling in prize money for payout to winners would make administration of the tax easier. While Goa suggested a 28 per cent tax on gross gaming revenue of casinos, it said an 18 per cent GST on platform fee/service charge levied by platform operators, Goa said. Goa also suggested that contributions to the prize pool may be treated as supply not liable for GST levy.