The Goods and Services Tax (GST) Council is likely to take a final step on the issues of online gaming, casinos and horse racing on August 2nd 2023. The 50th GST Council meeting was conducted on 11th July 2023.
The council announced that Online Gaming and Horse Racing will be subject to a 28% GST rate based on the Full Face Value Amount. This decision will lead to an amendment in Schedule 3 of the GST Act. However, the officials clarified that there will be no alteration in the proposed GST rate for online gaming, as previously recommended during the 50th council meeting.
The GST council is likely to take up this issue as a final one via video conferencing. According to the GST officials the GST Council will convene on August 2 through videoconferencing to address this matter. During the meeting, they will present the proposed changes to the GST law and rules for the Council’s approval.
The meeting is to discuss the legal amendments as per the recommendations by the council. The ministry is likely to bring up the changes before the parliament in the Monsoon session and clarify the issues troubling the concerned industry so far.
The gaming industry is highly distressed by the decision taken by the GST Council. The cases of Probo Media and Gameskraft are still in the consideration of the High Court regarding the GST rates. Recently, the Karnataka HC quashed the GST demand of Rs. 21,000 against the Gameskraft. However, the Central government is to appeal the issue before the Supreme Court.
Read More: GST on Online Gaming: Karnataka HC quashes SCN of Rs. 21000 Crores against Gameskraft
Also read: Central Govt to appeal SC against Karnataka HC Order quashing GST Notice of Rs. 21000 crores on Gamerskraft
The other decisions took in the last council was Exempting GST on certain cancer medicines and medicinal food products, GST Slashed on Four Items Uncooked i.e., unfried snacks reduced from 18% to 5%, Fish soluble paste reduced from 18% to 5%, Imitation Zari threads reduced from 12% to 5% and LD Slag reduced from 18% to 5%.
Read More: 50th GST Council Meeting: Key Highlights
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