GoM On GST Levy on Online Gaming to Complete Report Within 1 to 2 days The report is due in 1-2 days.

The GST Council will likely convene at the middle of August or in the beginning of September to discuss the content of the report.

The panel was last able to propose taxing the GST rate of 28% on the gross values of sales for online betting, horse racing and casinos

Convened by Meghalaya CM Conrad Sangma, the GoM last met on the 12th of July and did not make any progress in deciding on the GST rate

The Group of Ministers (GoM) was established in the Ministry of Finance to decide the GST levied rate on casinos, online gaming or horse-racing, is expected present its findings in about a day or two for finance minister Nirmala Sitharaman.

The GST Council will likely convene towards the latter part of August or the beginning of September to debate the details in the document, according to sources from the news agency PTI..

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Convened by Meghalaya Chief Minister Conrad Sangma, the GoM last met on the 12th of July and failed to reach any consensus in deciding on the goods and service tax (GST) amount.

In a previous report that was presented to the GST Council in the past, the GoM had suggested imposing a 28% GST on the gross values of sales for horses racing as well as casinos and online gaming. While the majority of states were in agreement that they would be taxed, the GST Council did not reach a consensus over the issue as Goa requested further discussion regarding GST on casinos.

The GST Council directed the GoM to conduct further discussions and to submit the final report before July 15. But there was an inaccuracy in the report, and it hasn’t been filed until now.

It is crucial to remember that games online that involve gambling or betting currently attract 28% GST however the rate is 18% for games that do that do not involve gambling or betting. Horse racing is a sport where GST is charged at 28% of the bet amount. Casinos however are currently subject to GST of 18 percent.

The report that was submitted to the Council suggested taxing online gaming to the full amount of the amount of consideration, which includes the entry fee for contests which is paid by the user. In the case of casinos, the committee recommended that GST be applied to the value of the chips that are purchased from casinos by a player. They also suggested that no additional GST would be applied to the amount of bets placed during each game.

For races for race courses, the GoM suggested that GST be charged on the total amount of bets made by bookmakers.

The government set up the panel to review the GST on these services in May of last year. The group includes Gujarat minister of finance Kanubhai Patel Goa Panchayati Raj secretary Mauvin Godinho Tamil Nadu finance minister P Thiaga Rajan, Uttar Pradesh finance minister Suresh Khanna, and Telangana Finance secretary T Harish Rao.

In the meantime, the industry waits with anticipation for the conclusion of the report’s final version. A lot of people in the gaming industry on the internet have suggested that the increase in GST from 18% to 20 percent could increase prices and place the whole online gaming industry in a position of stress.

“Our sole request is to add GST on the GGR, a procedure that has always been practiced and is internationally accepted” All India Gaming Federation CEO Roland Landers earlier told Newsexposer

As a reassurance to the gaming industry in a positive direction, the GoM may be looking into taxing 28% of the gross gaming revenues, in line with the demands of the industry.

The online gaming market that is homegrown is today dominating by unicorns like Dream11, Mobile Premier League, Games24x7, among others.

According to an report that was released, the number of gamers who play online in India increased 1.6X from 250 million in 2018 to 400 million by the middle of 2020. Based on the Newsexposer study report, the Indian gaming market for esports is predicted to be worth $175 million in total revenue in 2023.

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