GST Council Is Likely To Meet On August 2 To Discuss Rules The amendment in GST law and rules as per decision taken by Council in the previous meeting will be put up to Council for approval
By Teena Jose
Opinions expressed by Entrepreneur contributors are their own.
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
The Goods and Services Tax (GST) Council is likely to meet on August 2 to discuss the issues over the rules related to implementation of 28% GST on horse racing, online gaming and casinos.
Council is not likely to rethink the decision to impose 28% GST on the full value of those activities. "The discussions will be around procedural issues and amendments in the GST law that have to be approved by the GST Council. Also, there will be no roll back of the decision, according to media reports citing close sources of the matter.
The amendment in GST law and rules as per decision taken by Council in the previous meeting will be put up to Council for approval. The earlier decision was only in principle. Additionally, the legal amendment will provide specific details about the rate, the methodology of the face value on which the 28% GST rate would be levied for online gaming, casinos and horse racing, added the source.
The GST Council had decided to impose 28% GST on online gaming, horse racing and casinos on the full face value in its meeting on July 11. To bring this into effect, section 3 of the GST Act needs to be amended to bring online gaming and horse racing as taxable actionable claims. The government is keen on introducing the amendments in the ongoing Monsoon session of Parliament that is on till August 11, stated the reports.
While the government has maintained that this decision is not intended to harm any industry, online gaming companies have raised concerns about the impact of this move on the industry.
Earlier this month, top global and domestic investors including Tiger Global, Peak XV (formerly Sequoia Capital India) and Steadview Capital reportedly wrote to the Prime Minister, seeking to review the 28% GST on online gaming. They said that the decision will adversely impact $4 billion in prospective investments in the sector.
The Ministry of Electronics and Information Technology (MeitY) may also take up the issue with the GST Council and ask for a possible review.
