GST Council to talk about modifying law, online gambling and casinos

The GST Council, which is scheduled to meet next week in Chandigarh, is likely to discuss changes in law to facilitate provision for setting up GST Tribunals. The Council will also discuss the group of ministers’ (GoM) report on online gaming, casinos and race courses, sources told CNBC-TV18. The GoM met on June 17 and discussed issues like tax slabs and rates, among others. The GoM has proposed that rates and valuation standards for the 28 percent GST that will be imposed on casinos, racetracks, internet gambling, and lotteries be uniform. It said that no distinction should be made between games of skill and games of chance for the purposes of the levy.

It is advised that in the case of online gaming, the full value of consideration will take into account any contest entry fees, player participation fees, etc., whereas in the case of racetracks, the full value of bets placed with bookmakers and pooled in the totalizator should be taken into account. In the case of casinos, the entire face value of any chips or coins that customers purchase from a casino will be taken into account.

The value of bets put in each round of betting, including those played using winnings from earlier rounds, shall not be subject to additional tax after GST is charged on the purchase of chips or coins (on face value). Additionally, it is advised that the entry charge to casinos include the cost of one or more additional supplies, such as the cost of food and beverages. Any other extra services or optional purchases made without using an entry ticket will be subject to tax at the rate that applies to such purchases.