Plans to introduce a GST of 28 per cent for online gaming, racecourses, and casinos have been delayed.
India.- The Goods and Services Tax (GST) Council has deferred the proposal made by a Group of Ministers (GoM) led by Meghalaya chief minister Conrad Sangma to introduce a GST of 28 per cent for online gaming, racecourses, and casinos in India. The GST Council has given the GoM until July 15 to reconsider its proposal.
According to the Economic Times, the GoM will consider whether to tax the total amount spent at casinos or only the amount spent on gambling.
The proposal had been criticised by gaming operators, including the platform WinZO which had said in a statement that “to paint the entire online gaming industry with the same brush as gambling…would have serious implications on the development of this sector.”
Casinos, horse racing and online games where no betting or gambling is involved currently pay 18 per cent on cash collected from each game. The rate of 28 per cent is for online games involving betting or gambling.