GoM calls for 28% GST on online gaming, casinos; tax likely on face value

At the moment, most online gaming platforms pay 18 per cent on the commission collected by online gaming platforms for each game

An empowered group of ministers (GoM) — set up to look into taxation of online gaming, casinos and races — has unanimously proposed a flat 28 per cent goods and services tax (GST) on these activities.

The panel of ministers, which met on Wednesday, also decided that the tax will be levied on the entire “face value” or “bet amount” and not on the total transaction value. Total transaction value includes the prize money, or the net commissions (revenues) that accrue to gaming firms.

The proposed move to levy tax on the face value will not affect state revenues as these activities