GST Council Meeting: The Goods and Services Tax (GST) Council in its meeting today is likely to finalise the modalities for determination of supply value in online gaming and casinos for levying 28 per cent tax.
The Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state ministers, in its last meeting on July 11 approved levying 28 per cent tax on full face value of bets in online gaming, casinos and horse racing.
Subsequently, the Law Committee, comprising Centre and state tax officers, have prepared draft rules for consideration of the GST Council with regard to computation of supply value for tax purposes. The Council will discuss the committee’s recommendations in a virtual meeting today. The All India Gaming Federation, which represents companies had termed the decision by the GST Council as ‘unconstitutional, irrational, and egregious’.
Responding to a query on how the GST authorities will tax the online gaming companies operating from overseas location, Minister of State for Finance Pankaj Chaudhary said there are sufficient enforcement provisions in GST laws to take action against such platforms who default in paying taxes. In a written reply in the Rajya Sabha, Mr . Chaudhary, said sufficient enforcement provisions exist to take action against offshore platforms, which do not pay prescribed GST.
Nirmala Sitharaman to chair GST Council meeting this evening https://t.co/gNq41yEFEh
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