India government eyes changes to gaming GST

The India federal government has set up a panel of state ministers to examine whether changes need to be made regarding how casinos, online gaming and racecourses are levied for GST. 

The seven-member panel will "examine the issue of valuation of services provided by casinos, racecourses, and online gaming portals and taxability of certain transactions in a casino, with reference to the current legal provisions and orders of courts," according to its terms of reference (ToR).

AMRG and Associates Senior Partner Rajat Mohan said, "In the pandemic period, the online gaming sector, including casinos, has seen massive user traction and flow of investments.

"Online gaming companies are in nascent stages in India, leading to multiple unresolved issues around taxation and valuation, posing a big challenge for the entire industry. Now a GoM has been constituted to understand, examine and resolve the uncertainty surrounding the valuation of services by casinos, racecourses, and online gaming companies," Mohan added.

Currently, services of casinos, horse racing and online gaming attract 18 per cent GST. The GoM would decide on the method of valuing the services.

Business Standard