India: GST Council may discuss online gaming tax in June

The GST Council may discuss the taxation of online gaming, horse racing, and casinos at its upcoming 50th meeting.

India.- The Goods and Services Tax (GST) Council is expected to address the taxation of online gaming, horse racing, and casinos in its upcoming 50th meeting in June. The matter could not be discussed in the previous meeting as the Group of Ministers (GoM) chair, Conrad Sangma, was absent due to elections in Meghalaya. 

While no specific date has been set, officials indicate that June is the most probable time for the meeting. However, the council may not resolve the tax issue at the meeting, as the GoM could not reach a consensus on how to tax online games or whether to categorise them as games of skill or chance.

At present, online skill gaming is taxed at 18 per cent of the gross gaming revenue, while betting and gambling are taxed at 28 per cent on full amounts. Reports suggest the GoM was in favour of applying 28 per cent GST to the full value but could not reach a consensus. Some fear an increase in taxes could encourage players to choose illegal gambling websites that do not deduct taxes.