Finance minister Nirmala Sitharaman, while announcing the decisions taken in the 47th GST Council meeting in Chandigarh, said the Council has decided to defer bringing online gaming, casinos and horse racing under GST for now after some issues were raised by Goa.

As per the FM, the GoM (group of ministers) on online gaming, horse racing and casinos was chaired by Meghalaya chief minister Conrad Sangma. “The discussions were essentially on the casino aspect of it. The Goa FM discussed why casinos will need a greater detailing and understanding and different treatment,” says the FM.

She adds that after Goa's request for special treatment for casinos, the GST Council decided the GoM on the agenda will get more time to hear casinos as well as stakeholders from online games and horse racing industries.

“Whether it is horse racing, online gambling or casinos -- the common thread that the committee highlighted is they are all part of betting and gaming. They are essentially gaming, in other words,” she says. She adds there may be an element of skill or chance in it, but essentially all three (casinos, online gaming and horse racing) are “gambling”.

“Even by the existing laws, they are treated uniformly and are taxed at 28%. Now this GoM, based on the judgement of the two SC judges, confirmed and upheld the existing laws, which treat all these varieties of games equally. The GoM, therefore, was in favour of continuing the status quo,” says the FM.

She, however, added the Goa minister placed his views in front of the entire Council and requested the treatment for casinos should be different. “Therefore, it was decided the GoM will once more hear Goa on casinos. And, online gaming and horse racing (stakeholders) will also be heard again. The final report should be back again by July. The council will meet on this GoM agenda and one more on August 1 or in the first week of August.”

She says the other GoM (group of ministers) under Karnataka chief minister Basavaraj Bommai submitted its reports on rate rationalisation. It also looked at exemptions and corrections of inversions. The FM says the issue of the correction of inversion and exemption was taken up during the meet, but the rate rationalisation aspect was not. “For that, the GoM has given an extension of time. For the two agendas, findings and observation were final,” she adds. The recommendations given on items 1 and 2 (corrections of inverted duties) of the Basavaraj Bommai committee have been accepted, says the FM.

rate inversion

GST Meet: Tax on online gaming, casinos, horse racing deferred