GST Council decides on 28% tax on online gaming, horse racing, casinos; exempts tax on certain imported drugs
New Delhi: Federal indirect tax body the Goods and Services Tax (GST) Council on Tuesday exempted integrated GST (IGST) levied on select drugs when imported for personal use, redefined sports utility vehicles to prevent car makers side stepping the highest tax bracket and decided on levying 28% uniform GST on online gaming, horse racing and casinos on the full-face value of bets. Finance minister Nirmala Sitharaman who also chairs the GST Council said at a briefing that tax rates were brought down on four items--uncooked snack pellets, fish soluble paste, certain yarn and LD slag--a byproduct of steel production that is used in certain industries.
The Council also exempted IGST in the case of three items--cancer drug Dinutuximab (Quarziba) and medicines and food for special purposes used in the treatment of rare diseases spelt out by the health ministry. As per the tax rate changes, uncooked snack pellets and fish soluble paste will now be taxed at 5%, down from 18%, while a specific type of yarn will be taxed at 5% down from 12%.
Tax rate on LD slag will be brought down from 18% to 5% to be at par with blast furnace slag and fly ash. In the case of taxation of online gaiming, horse racing and casinos, a vexed issue on which ministers did extensive consultation, the Council recommended amendments to the law to specify 28% tax on all three on their full face value.
"Today I am happy to say we have arrived at a decision. There will be some amendments to GST law..
Simply put, online gaming, horse racing and casinos will be taxed at 28% and will be taxed on full face value," Sitharaman said. Amendments to GST law will be brought to specify that Tax will be applicable on the face value of the chips purchased in the case of
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