PANAJI: The GoM on online gaming, horse racing and casinos had a broad agreement that a 28 percent GST should be levied on all the three supplies, but a consensus eluded on taxability of online games, as Goa suggested an 18 percent tax on platform fees, sources said.
A final view on taxation rate as well as whether tax is to be levied on gross gaming revenue (GGR) or fees charged by the platform; or on the full face value of bets put in by players of online gaming, horse racing and casinos would be taken by the GST Council on July 11.
Also, the Council, chaired by the Union Finance Minister and comprising state counterparts, has to decide on whether these three activities fall under the category of actionable claim of betting and gambling, sources added.
The Group of Ministers, convened by Meghalaya Chief Minister Conrad Sangma, has members from eight states– West Bengal, Uttar Pradesh, Goa, Tamil Nadu, Telangana, Gujarat and Maharashtra.
Of the eight states, West Bengal and Uttar Pradesh were of the view that a 28 percent GST should be levied on all three supplies on full face value of the bets placed. Gujarat, however, was of the view that 28 per cent tax should be levied on platform fees.
Meghalaya was of the view that 28 percent tax should be levied on GGR or platform fees or commission charged by casinos, online gaming and horse racing. It also suggested that a special mechanism to carve out an ‘Escrow Account’ for the purpose of pooling in prize money for payout to winners would make administration of the tax easier.
While Goa suggested a 28 percent tax on gross gaming revenue of casinos, it said an 18 percent GST on platform fee/service charge levied by platform operators, Goa said.
Goa also suggested that contributions to the prize pool may be treated as supply not liable for GST levy.
Tamil Nadu and Telangana have suggested that if the GST Council decides that the three activities are not actionable claims of betting and gambling, then 28 percent tax should be levied on GGR.