GoM to Finalize Tax Proposals on Online Gaming, Casinos This Month

A Group of Ministers (GoM) appointed by the Goods and Services Tax Council to look into the taxation of online gaming, racing, and casinos, and the GoM is expected to recommend a flat rate of 28 percent.

The GoM is expected to make a final decision on the rate, as well as whether the levy should be based on gross gaming income or per transaction, GOM has decided to meet again in the 3rd week of May to take the discussion further.

On Monday, the GoM, led by Meghalaya chief minister Conrad Sangma, convened to review the valuation of casino and internet gaming services.

“While there is general agreement on a flat 28 percent tax rate, there is no agreement on whether the tax should be imposed on gross gaming revenue or per transaction. A few members also expressed concern from the gaming business that learning-based games should be kept in the 18 percentile ““Slab,” stated one of the participants.

The GST rate for online games that involve betting or gambling is now 28 percent, whereas the rate for games that do not involve betting or gambling is 18 percent. The commission received by online gambling providers for each game is also subject to an 18% tax.

GST is levied at a rate of 28% on the total bet value in horse racing.

“Their (gaming industry’s) desire is that they should be taxed on gross gaming revenue, not on transactions or the number of times they (users) play on different games,” said Mauvin Godinho, Goa’s transport minister and a GoM member.

“GoM member will also present their view on concerns raised by stakeholders and already existing tax demands”, said by Chief Minister of Meghalaya, Chairman of GST GoM Conrad Sangma.