The Indian federal government is seeking to change the valuation of casinos, online gambling portals and racecourses for levying goods and services tax (GST).
India.- The government of India is analysing possible changes to the way casinos, online gambling portals and racecourses are valued for goods and services tax (GST).
According to the Business Standard newspaper, a seven-member panel of state ministers has started to examine the possibility of changing the way gambling services are valued for the tax.
The terms of reference (ToR) say the group of state ministers will “examine the issue of valuation of services provided by casinos, racecourses, and online gaming portals and taxability of certain transactions in a casino, about the current legal provisions and orders of courts.”
Rajat Mohan, AMRG and Associates Senior Partner, said: “Online gaming companies are in nascent stages in India, leading to multiple unresolved issues around taxation and valuation, posing a big challenge for the entire industry.
“Now a group of ministers has been constituted to understand, examine and resolve the uncertainty surrounding the valuation of services by casinos, race courses, and online gaming companies.”
Gambling options such as casinos online gaming and horseracing currently attract 18 per cent of goods and services tax.
In January, a think-tank has proposed the creation of an independent regulatory body for fantasy sports.
It proposed that the government create a self-regulated body for fantasy sports gaming, mainly in light of the recent attention the games have received in the media.
Several operators have proposed that such a body would also help ensure that tax payments from the industry are paid correctly and that enforcement action is taken against illegal operators.