The Group of Ministers (GoM) constituted by the GST Council on
May 24 to look into the twin issues of classification and valuation
of the online gaming, race course and casinos, is expected to
submit its report to the GST Council by the next month. The final
decision will be taken by the council in its next meeting
thereafter.
On the GST rate aspect, the GoM is likely to recommend a single
GST rate for all sorts of games and that too in the highest rate
slab of 28%. The thought here this is that a single rate structure
will put an end to the confusion on classification of games -
whether a game is a 'Game of Skill' (currently taxed at
18%) or a 'Game of Chance' (currently taxed at 28%). The
industry has represented for a lower 18% GST rate, however, it
seems the GST Council is keen to bring all online games at the
highest tax rate slab of 28%.
