GST Council likely to meet on August 2 to discuss online gaming tax treatment, law changes
The Goods and Services Tax (GST) Council is likely to meet on August 2 to take a final decision on the 28% GST on online gaming, casinos and horse racing, the Business Today reported Wednesday citing sources. The discussions will be around procedural issues and amendments in the GST law that have to be approved by the GST Council, “there is no backtracking on the proposal", the Indian Express reported quoting a senior government official. The GST Council had unanimously decided to impose 28% GST on online gaming, horse racing and casinos on the full face value in its meeting on July 11.
To bring this into effect, section 3 of the GST Act needs to be amended to bring online gaming and horse racing as taxable actionable claims. The government is keen on introducing the amendments in the ongoing Monsoon session of Parliament that is on till August 11. The Business Today reported that the gaming industry also wants clarity on whether the GST would be levied at the entry level or on each bet that is placed during a game.
The industry has said the tax impact could be very high if GST is imposed on every bet. The GST Council may also deliberation this issue, but it is not clear whether it is part of the agenda of August 2 GST Council meet as of now. The online gaming industry has raised its concerns about the impact of the tax and has said it could force companies to move abroad.
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