1. US rules out bailout for Silicon Valley Bank, auctions reportedly underway 2. Apple CEO Tim Cook backs AR/VR headset, likely to launch this year 3. Infosys’ Mohit Joshi joins Tech Mahindra as MD and CEO

GST levied on games of skill can be dicey for clans

Spread the love

The #GST Council has appointed a Group of Ministers (GoM) to consider the rate and incidence of imposing GST on lotteries, horse racing, and online gaming in the coming week. The industry seems to be concerned about what they think.

Since the #PublicGambling Act of 1867, which prohibited games of chance (gambling) unless licensed, many differences have existed in the #Indiangaming (not gambling) industry for more than 150 years.

Skill games in general, and horse racing in particular, are not considered gambling. This distinction has even been upheld in court by India’s Supreme Court and other high courts.

The gaming industry: Considered as gambling

According to media reports, the GoM considers the entire gaming industry to be gambling, which is not only contrary to established legal precedent but may also violate the #CGST Act of 2017.

Claim Free Bets

The CGST Act seeks to exempt actionable claims from the scope of GST, with the exception of “lotteries, betting, and gambling.”

Even within the category of skill games, all games cannot be grouped together. Staking on horse racing, for example, is facilitated by race clubs, which are all non-profit organizations.

These race clubs primarily rely on staking commissions to fund horses, jockeys, and livestock, among other things.

Difficulty in pointing out differences

It will also be extremely difficult to differentiate between the incidence of taxation on casino games and some skill games like rummy and poker, which are played both online and on casino floors.

Finally, when determining the tax rate and incidence, the GoM should keep in mind that, with the advancement of technology, gaming services have become global.

Otherwise, revenues may fall and users may shift to unregulated foreign portals if the government does not take a comprehensive approach.

How to get gst number

All people and organisations selling goods or services in India are required to register for GST. When the total value of supplies reaches Rs. 20 lakh, GST registration is required. To make the process of submitting taxes simpler, the Ministry of Finance (MoF) simplified the GST registration process. If the value exceeds Rs. 10 lakh per year and the firm operates in a special category state, GST registration is required. Let’s examine the requirements for acquiring GST registration in this post. The post also discusses the paperwork needed and the online GST registration process.

When was gst implemented in india

GST – Goods and Services Tax

GST is a multi-stage tax system which is comprehensive in nature and applied on the sale of goods and services. The main aim of this taxation system is to curb the cascading effect of other Indirect taxes and it is applicable throughout India.

Gaming industry in india

Since its inception in the year 2000, the online gaming sector has grown significantly, demonstrating tremendous growth potential. It quickly expanded to become a multibillion dollar sector and has continued to grow rapidly. The growth has followed an exciting course.



    All Posts

    Related Post

    View All

    Budget’s growth focus to face macro challenges

    February 2nd, 2022 | THE FREE MEDIA

    Spread the loveThe Budget is focused on growth, but will face macro challenges, Japanese brokerage Nomura said in a report...

    India has taken a balanced stand on the war in Ukrai...

    June 6th, 2022 | THE FREE MEDIA

    Spread the loveNagpur: RSS chief Mohan Bhagwat on Thursday said India has taken a “balanced stand” on the Russ...

    Ban on Single-use Plastic in India from July 1, all ...

    June 20th, 2022 | NISHA HIRANI

    Spread the loveSingle-use plastic will be prohibited in India beginning July 1. Single-use plastic items are prohibited fr...