GST News: The GST Council has today postponed the proposal to increase the GST rate on online gaming.
GST News: The GST (Goods and Services Tax) Council has today (June 29) postponed the proposal to increase the GST rate on online gaming. On this, there was a proposal to increase the rate of GST from 18 percent to 28 percent. This information has been given by Karnataka Chief Minister BS Bommai. Had this proposal been accepted, the rate of GST on skill games would have been at par with chances games like gambling and betting. Bommai informed that there are some issues regarding this which need to be discussed. Because of this, the proposal to increase the rate of GST was rejected. GoM on online gaming has been given 15 additional days.
this was the offer
The Group of Ministers had proposed to levy GST on the entire amount of the contest entry amount instead of platform fee. Apart from this, it was suggested to keep it in the slab rate of 28 percent instead of 18 percent. The online gaming industry is growing rapidly and as of now, it is an industry of 30 thousand crore rupees.
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These are the problems of the industry on increasing the rate and changing the rules
According to Sameer Barde, CEO, E-Gaming Federation, the move like increasing the tax rate on higher base is not only against the international practice but also against the basic idea of GST. Barde says that online skill gaming operators are platforms where players from different regions are brought together. The collected money i.e. Pooled Money is given to the winning player. For this the platform charges a pre-determined fee, which is called GGR. The platform also pays tax on this. Now Borde says that if GST will be charged at the rate of 28 percent on this entire amount including pooled money and commission, then it is not only wrong in principle but will also harm the fast growing sector.
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28% GST on Race Courses and Casinos
Talking about horse racing, GST will continue at the rate of 28 per cent on the total money put on the pool in the totalizer and kept from the bookmakers. On the other hand, in the case of casinos, a player will have to pay GST at the rate of 28 per cent on the entire face value at which the chip/coin has been purchased from the casino. According to the Group of Ministers, in the case of casinos, once the purchase of a chip / coin is subject to GST on the face value, then after winning, if a bet is placed in the next round, it will not attract GST at the rate of 28 percent.
(Input: Prasanta Sahu)
