India: GST Council to discuss gambling tax in September

The GST Council has postponed its meeting to allow a group of ministers (GoM) to complete its review of gambling taxation.

India.- The Goods and Services Tax (GST) Council has postponed its August meeting on the taxation of gambling to September. The GST Council is considering the introduction of a Goods and Services Tax (GST) of 28 per cent for online gaming, racecourses, and casinos, but has delayed its meeting to allow a group of ministers (GoM) to complete and submit its report on the matter.

Another GoM, which is tasked with making recommendations on the establishment of GST tribunals in each state, also needs more time to complete its report.

Casinos, horse racing and online non-gambling games currently pay 18 per cent of the cash collected per game. The proposed 28 per cent rate would apply to online games involving wagering or gambling.

For casinos, the GoM has recommended taxing the full face value of chips/coins purchased by casino players. GST would no longer be levied on the stake value of each betting round, including bets won in previous betting rounds. Additionally, the GoM has proposed a 28 per cent GST on casino entry fees including food and beverages.

The proposal has been criticised by gaming operators, including the platform WinZO which said that “to paint the entire online gaming industry with the same brush as gambling…would have serious implications on the development of this sector.”

In July, the GoM met with the Bangalore Turf Club to discuss race-related topics, including GST. It also visited casinos in Goa to gain firsthand experience of the industry.