TAXES ON ONLINE GAMING AND CASINOS - ECONOMY
News: GST
Council to impose 28% tax on online gaming firms
What's in the news?
● The
Goods and Services Tax (GST) Council, at its 50th meeting, reduced or clarified
the tax rate on some items ranging from uncooked or unfried snack pellets to
special utility vehicles (SUVs), exempted imported drugs to treat cancer and
rare diseases, and brought an end to a years-long debate on tax treatment of
online gaming, casinos and horse racing.
Key takeaways:
● The
Council also examined States’ proposals
to set up 50 Benches of the much-awaited GST Appellate Tribunals in the
country.
● The
government has said that the statutory bodies to resolve mounting GST disputes
shall become operational within four to six months, with Benches coming up in
State capitals as well as places where High Courts have Benches, to begin with.
● The
Council cleared the appointment and service conditions for tribunal members and
the president, which will kick in from August 1.
Taxes on online gaming, casinos and horse racing:
● Whether
they involve skill or chance, or both or neither, bets and wagers made on all
three activities will attract a 28% levy
and the GST laws will be amended to include online gaming.
Taxes on other items:
● The
GST rate on uncooked, unfried snack
pellets and fish soluble paste was slashed from 18% to 5%, while imitation zari
threads or yarn will now attract 5% GST instead of 12%.
● The
Council also decided that food and beverages
consumed inside cinema halls shall attract 5% GST without any input tax
credits, as opposed to 18% levied on cinema services.
● On
services, the council have offered exemption on GST for satellite launch
services provided by private organizations
Go back to basics:
Reference - GST Council