GST Panel On 28% Tax On Casinos, Horse Races And Other State Revenue

Published:Nov 28, 202304:05
GST Panel On 28% Tax On Casinos, Horse Races And Other State Revenue
Horse Races And Other State Revenue

In a move that could have dramatic implications for the gambling industry, the Goods and Services Tax (GST) panel of state finance ministers, headed by Meghalaya chief minister Conrad Sangma, decided unanimously to hike the GST rate on casino, horse races and other such services to 28 per cent.

The panel will decide on the valuing method for these revenues and define what specific terms related to gambling industries are meant.

The panel of State Ministers from May 2021

In May last year, the Indian government established a special panel of State Ministers to assess, analyze, and decide on online casino services, land-based casinos and horse racing.

Although there is still no final report on its result, in recent news, it has been announced that there will be an increase of up to 28% in taxes.

Chandrima Bhattacharya, finance minister of West Bengal, reported in an interview that “the committee of officials will deliberate further and deliver a report within 10 days on whether the tax will be levied on gross or net value, after which the GoM will decide will meet again and take a call.”

GoM to decide on a valuing method

The Goods and Services Tax (GST) Council will decide on a valuing method and GST rate for casinos, horse races and other state revenue, as well as whether betting, lottery and gambling activities should be part of five broad categories - food products, restaurant services; hotels and lodgings; transportation services including telecoms; education; health care or personal care services such as hair dressing salons; real estate services such as demolition or construction of buildings.

The GST council has been discussing what to do with the state revenues from gambling as they will no longer be able to levy taxes on them after the introduction of GST. The government is planning to bring all these items under a single category called 'entertainment'.

What will happen now to the Casino Industry in India?

Therefore, casinos are now subject to a 28% tax on their income, which is a great achievement for the gambling industry - contrary to what you might think.

Yes, the percentage is high, but this will also make it possible to create a safer environment for players. Perhaps the best news for them would be that they can now begin to gain more peace of mind when betting at any of the casino sites listed here, platforms that have been reviewed and evaluated by industry experts.

This news is a step towards total regulation of the gaming industry in India. This battle has been long and difficult to face but is gradually bringing favourable results.

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