West Bengal Pushes For 28% Gst To Discourage Online Gaming And Casinos A Day Before Panel Meets

CNBC TV 18
 
West Bengal Pushes For 28% Gst To Discourage Online Gaming And Casinos A Day Before Panel Meets
Wild Casino
West Bengal finance minister Chandrima Bhattacharya has told Network18 that the state would advocate a 28 percent goods and services tax (GST) charge to discourage online gaming, casinos, and horse racing. This comes after Goa objected to an earlier recommendation and said that casinos needed to be treated differently.The Group of Ministers (GoM) on casinos, online gaming, and horse racing is scheduled to meet on Tuesday (July 12)."We don’t want to encourage online gaming. We feel that if at all this is practised then 28 percent should be levied. We don’t support gambling, too, as it has a bad impact on society and so more tax is better," said Bhattacharya.The GoM, set up in May 2021 and headed by Meghalaya Chief Minister Conrad Sangma, had highlighted in its report that horse racing, online gaming as well as casinos are all part of betting and gambling. It had recommended a 28 percent GST on all — against an 18 percent rate on services of casinos, horse racing and online gaming at present.What did the GoM recommendOnline gaming should be taxed at the full value of the consideration, including the contest entry fee paid by the player on participating in the game. Racecourses to attract GST on the full value of bets pooled in the totalisators and placed with the bookmakers.Casinos would attract GST on the full face value of the chips/coins purchased from the casino by a player. No further GST would apply to the value of bets placed in each round of betting, including those placed with winnings in previous rounds.Going back to the drawing boardWhile the GST Council was deliberating the GoM report in its meeting, Goa Industries Minister Mauvin Godinho highlighted that there was a need for greater detailing and understanding of why casinos require a different treatment in taxation compared to horse racing and online gaming.The GST Council, comprising the Centre and state finance ministers, asked the GoM to deliberate further on the recommendations and submit a final report by July 15.Other state ministers in the eight-member GoM include Maharashtra deputy chief minister Ajit Pawar, Gujarat finance minister Kanubhai Patel, Goa Panchayati raj minister Mauvin Godinho, Tamil Nadu finance minister P Thiaga Rajan, Uttar Pradesh finance minister Suresh Khanna, and Telangana finance minister T Harish Rao.