GST Council may meet next week to iron out technical issues on online gaming
GST) Council may meet again next week to iron out some technical issues like repetitive taxation in determining the face value for online gaming and casinos before clearing the draft amendment in the goods and services tax law in the upcoming monsoon session. The discussion will be restricted to the «technical issues» regarding implementation of the GST council decision and there will be no re-consideration and further discussion on the council’s decision to impose 28% on horse racing, casinos and online gaming companies on full face value, irrespective of whether it is game of skill or game of chance, ET has learnt.
While the meeting date is fixed for August 2, via video conferencing, the official maintained that considering the ongoing monsoon session timing and date may shift. “One clarity is required regarding determination of full face value if players use their winning money to play another game,” a senior official told ET.
“While this is a common practice, some concerns are there if it will lead to repetitive taxation so the law has to be clear and unambiguous regarding that,” the official added. Apart from this, the council will discuss two more technical points, related to casinos.
On July 19, ET wrote about the concern of the gaming industry regarding potential repetitive taxation, which could be a death blow to the industry as they wait for detailed notification from the government. “We believe that levying GST on face value at each game will severely impact the engagement of the user with the platform,” said Roland Landers, CEO of All India Gaming Federation, which represents companies such as Mobile Premier League, Zupee, and Gameskraft The Official added that the draft amendment is almost ready and the
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