Union Finance Minister Nirmala Sitharaman will chair the 51st GST Council meeting via videoconferencing in New Delhi on Wednesday, August 2, at 4 pm. During the meeting, the GST Council is likely to finalise the modalities for determining supply value in online gaming and casinos for levying 28 per cent tax.
“The meeting will be attended by Union Minister of State for Finance Pankaj Chaudhary, besides finance ministers of states and UTs (with legislature) besides senior officials from Union government and states," the finance ministry said in a tweet.
Union Finance Minister Smt. @nsitharaman will chair the 51st GST Council meeting via video conference, in New Delhi, TODAY.The meeting will be attended by Union Minister of State for Finance Shri @mppchaudhary, besides Finance Ministers of States and UTs (with Legislature)… pic.twitter.com/8mL0VWgjXc
— Ministry of Finance (@FinMinIndia) August 2, 2023
The Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state ministers, in its last meeting on July 11 approved levying a 28 per cent tax on the full face value of bets in online gaming, casinos and horse racing.
Subsequently, the Law Committee, comprising Centre and state tax officers, prepared draft rules for consideration of the GST Council with regard to computation of supply value for tax purposes.
The committee has suggested insertion of a new rule under which value of supply of online gaming would be the total amount deposited with the online gaming platforms by way of money or virtual digital assets on behalf of the player.
With respect to casinos, the committee has proposed that the supply value would be the amount paid by a player for purchase of tokens, chips, coins or tickets.
The council will discuss the committee’s recommendations in a virtual meeting on Wednesday.
The 28 per cent tax on online gaming has been vehemently opposed by the gaming industry terming the decision “disappointing", “catastrophic", and “murder". The All India Gaming Federation (AIGF), which represents companies like Nazara, GamesKraft, Zupee and Winzo, had termed the decision by the GST Council as “unconstitutional, irrational, and egregious".
On July 11, the GST Council in its 50th meeting decided to impose a 28 per cent tax on online gaming, horse racing and casino. “Tax will be applicable on the face value of the chips purchased in the case of casinos, on the full value of the bets placed with bookmaker/totalisator in the case of Horse Racing and on the full value of the bets placed in case of the Online Gaming," the finance ministry had said in a statement on July 11.
(With Inputs From PTI)
