Group of State Ministers to Review Online Casino and Gaming Service Rating for GST

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NEW DELHI: The government has set up a panel of ministers of state to better assess the services of casinos, the online gaming portal and races for the collection of the goods and services tax (GST).
The seven-member group, convened by Gujarat’s deputy chief minister Nitin Patel, will also consider whether a change is needed in the legal provision for better means of evaluating these services.
The Group of Ministers (GoM) “will consider the question of the valuation of the services provided by casinos, racetracks and online gaming portals and the taxation of certain transactions in a casino, with reference to current legal provisions and court orders ”, declared its terms of reference (ToR).
It will also review the administration of these valuation arrangements and whether another means of valuation is recommended.
The expert group would also examine the impact of such an assessment on other similarly placed services, such as the lottery.
Other GoM members include Maharashtra Chief Deputy Minister Ajit Pawar, West Bengal Finance Minister Amit Mitra, Arunachal Pradesh Chief Deputy Minister Chowna Mein, Goa Transport Minister Mauvin Godinho, the Minister of Interior of Karnataka Basavaraj Bommai and Minister of Finance of Tamil Nadu P Thiagarajanjan.
The group would submit its report to the GST Council, chaired by the Union finance minister and composed of state finance ministers, within six months.
Rajat Mohan, Senior Partner of AMRG and Associates, said: “During the pandemic period, the online gaming industry, including casinos, has seen massive user traction and a flow of investment.
“Online gaming companies are in their infancy in India, resulting in multiple unresolved tax and valuation issues, posing a daunting challenge for the entire industry. Now a government was formed to understand, review and resolve the uncertainty surrounding the valuation of online casino, racing and gaming company services, ”added Mohan.
Currently, online casino, horse racing and gambling services attract 18 percent GST. The GoM would decide on the method of valuing the services.



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