GST council proposes 28% tax on online casinos and gambling; Association says: ‘Need clarity on ambiguities in online gambling GST regime’

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Panaji, May 19: The All India Gaming Federation on Thursday sought clarification on ambiguities in the online gaming goods and services tax regime, a day after the group of ministers of the GST Council (GoM) recommended an increase 28% GST on the casino. , racecourse and online gaming services.

In a statement on Thursday, Roland Landers, CEO of the All India Gaming Federation, said the gaming industry is waiting for a clear judgment on GST restructuring and rate rationalization on online gambling. Google’s Russian subsidiary is heading for bankruptcy because it can’t pay the salaries of 100 employees

“While it is clear that the GST assessment is likely to be 28%, however, there seems to be a lot of confusion over the assessment methodology, including initial sum, gross gaming revenue and total deposits reported in the media. I believe that any other valuations other than commissions/service fees will be disastrous for the gaming industry,” Landers said.

The Federation’s senior official also said that the booming online gambling industry is expected to be a significant contributor to the economy, due to which it was imperative that the GST regime for the industry be “rational and progressive.

“The mechanism for assessing the collection of GST on the entire participation esteem versus the service fee component should be clearly defined to avoid any ambiguity or potential litigation. Any potential outcome of this litigation will negatively impact new entrants and foster innovative strategies,” Lander says.

“That’s not all, another reason why GST only applies to service fees is that if it applies to the total value of the pool, it would negatively impact customers, as well as ‘they would get less playable value and encourage the push towards gray market operators,’ he added.

(The story above first appeared on LatestLY on May 19, 2022 at 3:56 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle , log in to our website latestly.com).

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