Correct Answer : Option (C) - 28%
The ministerial panel formed for casinos, race courses and online gaming under the Goods and Services Tax (GST) regime is likely to reiterate its earlier stance of a uniform 28 per cent tax rate for the three categories, irrespective of whether it is a game of skill or chance.
* The final call about the valuation mechanism, however, will be taken by the GST Council as the GoM members have differed on whether it should be levied on the platform fee or the entire amount paid by the participants.
* The panel, which met on Tuesday (22nd November 2022), is likely to fall back on the initial report presented before the GST Council in June. This would imply a hike in tax rates for online gaming, as online gaming platforms currently pay 18 per cent GST on platform fee alone, and not on the full value including prize money.
* The online gaming industry grew exponentially during the Covid-19 pandemic. Online gaming currently contributes more than Rs 2,200 crore of GST, as per a recent study by EY and Assocham. As per a KPMG report, the online gaming sector would grow to Rs 29,000 crore by 2024-25 from Rs 13,600 crore in 2020-21.
What has the GoM discussed?
Most states in the GoM are learnt to have converged in favour of a 28 per cent tax rate
, but they differ on the valuation mechanism. While West Bengal and Uttar Pradesh support taxing the total value, Goa has recommended a tax on the entry point for casinos..Source : Indian Express