The Fitment committee, which comprises of officers from various states, is likely to meet this week to discuss on hike in GST on online gaming, race course and casinos, reported Business Today TV.
Last week, the GoM under the leadership of Meghalaya Chief Minister met to discuss the GST slab rates for casinos, racecourses, and casinos. According to reports, the GoM was unanimous on 28% GST on the gaming sector. Currently, skill gaming is taxed at 18%.
"There was clear consensus in meeting held by group of ministers last week. We are waiting for the committee to decide on whether 28 per cent GST will be taxed on gross or net value." said a person privy to the development.
"Following Fitment committee's report, the GoM is likely to meet before 18 May to deliberate on the decision. Post this, we will submit the report to GST Council." added a source according to Business Today.
The government had in May last year set up a panel of state ministers for better valuation of services of casinos, online gaming portals and race courses for levying GST.
Earlier in October 2021, the GST Secretariat had asked the GST Council to provide clarity on the GST rate and the applicability of the levy on the services related to online gaming, casinos, and horse racing. This followed a directive dated September 29 from the Punjab Haryana High Court (PHHC) on the matter. The PHHC had directed the GST department to take no coercive action on an online gaming company against the demand notices until the GOM constituted to examine the issue to provide clarity.