GoM recommends 28% GST on online games 

The GoM’s recommendations are generally accepted by the GST Council, which is likely to hold its meeting later this May or in June first week. 

Published: 19th May 2022 10:20 AM  |   Last Updated: 19th May 2022 10:20 AM   |  A+A A-

Conrad Sangma

Meghalaya Chief Minister Conrad K Sangma (File | PTI)

By Monika Yadav
Express News Service

NEW DELHI: The eight-member Group of Ministers (GoM), headed by the Meghalaya Chief Minister Conard Sangma, has agreed on levying 28% GST on casino, online gaming services and race course, according to sources. The GoM report will be submitted in a day or two to the GST Council. The GoM’s recommendations are generally accepted by the GST Council, which is likely to hold its meeting later this May or in June first week. 

“The GoM on casinos, race courses & online gaming has come to a consensus. The report of our submissions will be handed over to FM Sitharaman in a day or two & the matter will be presented in the next GST Council meeting,” Conrad Sangma, convener of the GoM tweeted Wednesday. Currently, 18% GST is levied on services of casino, horse racing and online gaming. The Centre in May 2021 had formed a committee of eight state ministers to look into the valuation of taxable services provided by online gaming companies and casinos. The panel had met on May 2 and built consensus on levying 28% GST on these services. It met again on Wednesday to decide on the valuation of these services for taxation purposes. 

According to the sources, the online gaming industry representatives had recently approached the finance ministry to keep GST below 18% on online games as higher taxes would badly hit the sector worth $2.2 billion.  The other members of the GoM include Maharashtra Deputy Chief Minister Ajit Pawar, Gujarat Finance Minister Kanubhai Patel, Goa Panchayati Raj Minister Mauvin Godinho, Tamil Nadu Finance Minister P. Thiagarajan, Uttar Pradesh Finance Minister Suresh Khanna and Telangana Finance Minister T. Harish Rao.

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