Explorer

Election Results 2024

(Source: ECI/ABP News/ABP Majha)

GST Council Meeting On July 11, May Take Up Online Gaming Issue: Report

The 50th GST meeting, chaired by Union Finance Minister Nirmala Sitharaman, is likely to look into the taxability issue of online gaming and resolve it, according to reports.

The Goods and Services Tax (GST) Council meeting will be held on July 11, 2023, at the Vigyan Bhawan in New Delhi, the all-powerful tax authority announced on Thursday. The 50th GST meeting will be chaired by Union Finance Minister Nirmala Sitharaman. According to a Business Standard report, the council is likely to look into the taxability issue of online gaming and resolve it.

"The 50th meeting of the GST Council will be held on 11th July 2023 at Vigyan Bhawan, New Delhi," the GST Council tweeted on Thursday.

The report quoted a government official privy to the discussion saying, "Some of the states are not in favour of treating them on par with betting and gambling. Also, they are of the view that tax rates should not be high as it would discourage technology-driven games,”

The matter of taxing online gaming firms has been pending for some time. The GST Council had assigned a committee of state ministers led by Meghalaya Chief Minister Conrad Sangma to address the issue, but they were unable to reach an agreement and submitted their report in December. The committee maintained its previous stance of a 28 per cent tax rate on the total value, including winnings. As the committee couldn't reach a consensus, they referred the matter back to the GST Council.

“Some of the states are not in favour of treating them on par with betting and gambling. Also, they are of the view that tax rates should not be high as it would discourage technology-driven games,” a government official privy to the discussion told BS.

Also Read: GST Council Meeting On July 11, May Take Up Online Gaming Issue: Report

According to the report, the sources said that the state panel reached an agreement to impose a 28 per cent tax on the supply of actionable claims. However, they couldn't determine whether the tax should be based on the net amount (after deducting prize money) or the gross gaming revenue (GGR).

Gross gaming revenue (GGR) refers to the total amount collected by casinos and online gaming companies before distributing winnings to players. The panel reportedly discussed the implications of previous proposals, including taxing based on the face value and gross revenue.

According to the report, the argument has been raised that taxing GGR would have significant financial implications. Applying GST to online gaming or casinos based on GGR creates a significant disparity in tax treatment compared to lotteries, which are taxed based on face value.

Regarding casinos, an empowered group of ministers had previously recommended imposing the highest GST rate of 28 per cent on the full face value of chips or coins purchased by players, the report noted. These chips can also be used to purchase items like food and beverages. However, Goa objected to this proposal.

View More
Advertisement
Advertisement
25°C
New Delhi
Rain: 100mm
Humidity: 97%
Wind: WNW 47km/h
See Today's Weather
powered by
Accu Weather
Advertisement

Top Headlines

Bengal: Is BJP Pushing Dilip Ghosh Towards Retirement? Speculation Rises After His Remarks
Bengal: Is BJP Pushing Dilip Ghosh Towards Retirement? Speculation Rises After His Remarks
Why Is Kangana Ranaut Trending Amid Maharashtra Election Results?
Why Is Kangana Ranaut Trending Amid Maharashtra Election Results?
How Thackeray Family’s ‘Gen-Next’ Fared: Aaditya & Cousin Varun Set For Victory, Raj’s Son Trails 3rd
How Thackeray Family’s ‘Gen-Next’ Fared: Aaditya & Cousin Varun Set For Victory, Raj’s Son Trails 3rd
Adani Group CFO Jugeshinder Singh Responds To Bribery Allegations — Here Is What He Said
Adani Group CFO Jugeshinder Singh Responds To Bribery Allegations — Here Is What He Said
Advertisement
ABP Premium

Videos

Maharashtra Election Results: BJP spokesperson laughs loudly at Samajwadi Party's performance in the assembly electionsMaharastra Election Results: Political stir intensifies in Maharashtra after the results | BJP | Congress | MVAMaharashtra Election Results: After victory in assembly elections, Shinde's statement puts BJP in troubleMaharashtra Election Results: BJP Reacts to CM Shinde's statement regarding Chief Minister's post

Photo Gallery

Embed widget