The Law Committee under the Goods and Services Tax Council is of the view that a clear definition and classification of the “game of chance” and “game of skill” is a must before deciding on the taxation of online gaming and betting.
The GoM, headed by Meghalaya chief minister Conrad Sangma, is looking into the GST on online gaming, horse racing and casinos, including the possibility for differential treatment between the game of skill and the game of chance.
The law committee has suggested that the GoM either wait for the Centre's detailed framework on the classification or rework its interim report with a clear classification before submitting the final report to the GST Council.
Many courts have overlapping definitions and it will be better if there is a uniform framework for this, the law committee has told the GoM. Since the Ministry of Electronics and Information Technology is already working on the framework, the law committee has suggested that the GoM could wait for it.
Currently, GST at 18% is levied on casinos, horse racing and online games where no betting or gambling is involved. The rate is 28% for online games involving betting or gambling.
