NEW DELHI: The panel of finance ministers seeking online gaming and casinos under GST failed to reach a consensus on Tuesday and decided to finalize their report by August 10.
Officials said the Group of Ministers (GoM) held a virtual meeting on Tuesday and discussed various methods of taxation of casinos, horse racing and online gaming.
The panel believed that further deliberations on the matter were needed and set August 10 as the date for finalizing its report, the officials added.
The report is likely to be discussed in the GST Council meeting scheduled for next month in Madurai.
Last month, the council, consisting of the Center and the ministers of state finances, referred back the report submitted by the GoM for further discussions.
The GoM, led by Meghalaya chief Conrad Sangma, had stressed in its report that horse racing, online gaming and casinos are all part of betting and gambling, and that 28 percent GST should be levied on the gross sales value.
Furthermore, the GoM has recommended that online games of chance be taxed at the full value of the consideration, including the competition entry fee paid by the player for participating in the game.
In the case of racecourses, the GoM had proposed levying GST on the full value of the bets collected in the totalizers and placed with the bookmakers.
With regard to casinos, the government had recommended that the tax be levied on the full face value of the chips/coins purchased by a player from the casino. No further GST will apply to the value of bets placed in each betting round, including bets placed on winnings in the previous rounds.
As the GST council deliberated on the GoM report in its June 29 meeting, Goa’s Industry Minister Mauvin Godinho stressed that there was a need for greater detail and greater understanding of why casinos require different tax treatment than horse racing and online gaming. .
The government then had to finalize its report on 15 July.
The other state ministers in the eight-member GoM include the Finance Minister of Uttar Pradesh, Suresh Khanna, the Finance Minister of Gujarat, Kanubhai Patel, the Finance Minister of Tamil Nadu, P Thiaga Rajan and the Finance Minister of Telangana, T Harish Rao.