CHANDIGARH: The Goods and Services Tax (GST) Council on Wednesday gave 15 days more time to a ministerial panel led by Meghalaya chief minister Conrad Sangma to finalise the regulations needed for the proposed new tax regime for casinos, online gaming and horse racing, said a state finance minister.
CHANDIGARH: The Goods and Services Tax (GST) Council on Wednesday gave 15 days more time to a ministerial panel led by Meghalaya chief minister Conrad Sangma to finalise the regulations needed for the proposed new tax regime for casinos, online gaming and horse racing, said a state finance minister.
The Council in-principle is in agreement with the recommendations of the committee but some regulations are yet to be finalised, for which an additional 15 days have been given. The committee will review the proposals again after that, said the minister.
The GST Council meeting currently underway in Chandigarh is expected to continue into late afternoon.
The committee had recommended a uniform 28% GST rate on horse racing, online gaming and casinos. The panel also recommended the base on which this rate should apply. Currently, businesses in these sectors are paying 18% GST, backed by court orders due to ambiguity on the subject.
The panel had recommended that the 28% rate should be levied on entry fee and on the value of chips or coins purchased at a casino, but not on individual bets placed by the player. In the case of online gaming, 28% tax rate should apply on the full value of the consideration paid by a player for participation. The panel said the 28% rate should apply on these businesses without any regard for whether it is a game of skill or chance or both.