The Group of Ministers (GoM) on casinos, race courses and online gaming on Monday discussed various aspects, including the possible GST rates and technicalities in regard to such activities, reaching a consensus on increasing GST on it to the highest slab of 28 per cent from the current 18 per cent.
GoM Convener and Meghalaya Chief Minister Conrad K Sangma, who had led the GoM to study GST rates on Covid-related materials last year, said that the Monday's meeting also discussed whether there be a common or different GST rates on online gaming.
According to Sangma, the annual turnover of online gaming only is around Rs 30,000 crores and the annual growth is 25 to 30 per cent. Few more technical aspects need to be discussed and the next meeting of the GoM would be held in the second week of May, he said.
West Bengal Finance Minister Chandrima Bhattacharya, a member of the GoM, on Tuesday said that the body had reached a consensus and that the panel has directed officers to look into the modalities for valuation for levying the tax, according to an Indian Express report.
“There is consensus among states that all the highest rate of tax of 28 per cent should be levied on all three activities. The question now is on what will be the valuation on which the tax will be levied. For this purpose, the financial aspect, the legal aspect will be looked into by the group of officers of the fitment committee and they will be giving a report by 10 days. Then again in mid-May another meeting will be called by the Chairman,” Bhattacharya told the publication.
Other members of the GoM include Maharashtra Deputy Chief Minister Ajit Pawar, who holds the Finance portfolio, state Finance Ministers Kanubhai Patel (Gujarat), Dr Palanivel Thiaga Rajan (Tamil Nadu), Suresh Kumar Khanna (Uttar Pradesh) and T Harish Rao (Telangana), and Goa Transport and Panchayati Raj Minister Mauvin Godinho.
The Meghalaya government has decided to legalise gambling and online betting for only the tourists coming to the state. State Law and Taxation Minister, James P K Sangma, had recently announced that the state government is considering introducing casinos and online gambling for tourists to generate revenues.
"No residents of Meghalaya would be allowed to participate or contribute in the proposed legalised gambling and online betting," he had told the media.
The groundwork for preparing Meghalaya as a hub for online gaming, online betting, and legalised gambling began in February last year when the Meghalaya Prevention of Gambling Act, 1970 was nullified and the Meghalaya Regulation of Gaming Ordinance, 2021 approved.
However, various organisations, including the influential Meghalaya United Christian Forum (MUCF), voiced "apprehension and shock" over the state government's decision.
With agency inputs
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