50th GST Council Meet: Casino, Horse Racing And Online Gaming To Be Taxed At The Uniform Rate Of 28% On Full Face Value

The 50th meeting of the Goods and Services Tax (GST) Council was held under the chairpersonship of Union Finance and Corporate Affairs Minister Smt. Nirmala Sitharaman.

A Group of Ministers (GoM) was constituted to look into issues related to taxation on casinos, horse racing, and online gaming. The GoM submitted its first report in June 2022, and it was placed before the GST Council in its 47th GST Council meeting. It was decided that the GoM may re-look into all the issues once again. The GoM submitted its report, which was placed before the 50th GST Council meeting.

In its second report, the GoM has recommended that since no consensus could be reached on whether the activities of online gaming, horse racing, and casinos should be taxed at 28% on the full face value of bets placed or on the GGR, the GST Council may decide.

The GST Council recommended that suitable amendments be made to the law to include online gaming and horse racing in Schedule III as taxable actionable claims. All three, namely casinos, Horse racing, and Online gaming, are to be taxed at the uniform rate of 28%. Tax will be applicable on the face value of the chips purchased in the case of casinos, on the full value of the bets placed with a bookmaker or totaliser in the case of Horse racing, and on the full value of the bets placed in the case of Online Gaming.

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