Group of Ministers on online gaming, casinos, race courses pitch for 28% GST: Sources

This, however, is a breather for the customers as well as the casinos, race courses and online gaming operators as it makes compliance much easier.

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Meanwhile, post the meeting, Chairman of the group of ministers — Meghalaya Chief Minister Cornad Sangma said that the group is ready with its report which is likely to be submitted to the Union Finance Minister in a day or two, without sharing much of the details.

“We will share the report with the Union Finance Minister in a day or two. I am hopeful that the GST council will take up the recommendations in the next meeting. These are just the recommendations and it is for the council to take a final call,” Sangma said.

Industry experts feel the hike in rates was in offing but it might discourage a nascent industry mushrooming in the country.

Ankur Gupta, Practice Leader ( Indirect Tax), SW India said, “As expected, GoM has unanimously agreed for levying 28 percent GST on online gaming. While the industry had made representations that grouping online games with betting/gambling would be a big hit to all market players, however, it seems that no such bifurcation would be made. In most countries, the online gaming industry is taxable more or less at par with the current taxability of 18 percent, therefore, it's a disadvantage for Indian game companies if the taxability moves to 28 percent. Now what has to be seen is the valuation of these services. It should be applicable only on margin/platform fee because in case it is applicable on the entire pool value then it would adversely impact the customers, as well as they would get less playable value.”