The group of state ministers on gambling GST — horse-racing, casinos and online gaming — on Thursday submitted its report with the views of different states to finance minister Nirmala Sitharaman — with a meeting of the GST Council scheduled on Saturday.
“Presented the Second Report of the Group of Ministers (GoM) on casinos, race courses and online gaming to the Union finance minister Sitharaman in New Delhi today,” the GoM’s chairman and Meghalaya chief minister Conrad Sangma tweeted.
The agenda for the meeting does not include gambling GST. But now that the report has been submitted, it is likely to be taken up on Saturday.
In the absence of a consensus on whether the tax be levied on only the fees of the gaming portal or the entire consideration, including the bet amount, the GoM had decided to refer all suggestions to the GST Council.
Most states in the GoM are learnt to favour a 28 per cent tax rate but they differ on the valuation mechanism. While Bengal and Uttar Pradesh support taxing the total value, Goa has recommended a tax on the entry point.
The GoM at its last meeting in November had agreed on a 28 per cent GST on online gaming casinos and horse racing — but tossed the ball to the Council on the taxing mechanism.
At present, online gaming attracts 18 per cent GST. The tax is levied on gross gaming revenue, which is the fees charged by the portals. The GoM had earlier recommended a uniform rate of 28 per cent on casinos, race courses, and online gaming with no distinction based on whether an activity is a game of skill or of chance or both.
When the Council asked the panel to relook the issue, the discussions focused on valuation — whether these activities should be taxed on gross gaming revenue or net value and to come up with a mechanism of arriving at GGR or net value.
In casinos, the GoM had suggested GST be applied at 28 per cent on the full face value of the chips/coins purchased from the casino by a player. No further GST would apply on the value of bets placed in each round of betting, including those played with winnings of previous rounds.
Nirav loses plea to move apex court
London: Fugitive diamond magnate Nirav Modi on Thursday lost a bid to take his fight against extradition to India on charges of fraud and money laundering to the UK’s Supreme Court.
The jeweller, who fled India in 2018 before details of his alleged involvement in a large-scale fraud at the Punjab National Bank became public, has argued there is a high risk of suicide if he is extradited. Modi, 51, has denied any wrongdoing and his lawyer declined to comment.
London’s High Court on Thursday refused Modi’s application to certify a “point of law of general public importance” and rejected his application for permission to appeal to the Supreme Court.
Judge Jeremy Stuart-Smith last month ruled that Modi could be kept safe at the Arthur Road jail in Mumbai, where he is due to be detained.
The judge said that the risk of suicide if Modi is extradited may be high, but that the arrangements at the prison “will enable the authorities to cope properly with Modi’s condition”.
Reuters
