GST law panel working on definitions of games of skill, chance
Centre and state GST officers are working with online gaming sector experts to define 'games of skill' and 'games of chance' with a view to design different taxation structures for them, sources said.
The vexed issue of levying Goods and Services Tax (GST) on online games has been hanging fire for over a year now with many states pitching for a lower tax rate on those online games which require skill. They are of the opinion that games of skill should not be treated at par with games of chance.
The absence of a clear definition often leads to tax notices being sent to online game portals and subsequent litigations.
According to sources, the GST Council's Law Committee, which met in Bengaluru on Saturday, discussed the issues concerning definition for 'games of skill' and 'games of chance' with technical domain experts.
As all states are not part of the law committee, the draft report on definition would be shared with all states for their views.
Sources further said the GoM (Group of Ministers) wants to present a report to the Council, which is legally tenable and cannot be challenged in the courts. The panel of ministers will consult all stakeholders before finalising its report.
Only after a definition is finalised, a call would be taken on the tax rates to be levied and also on whether it should be levied on gross gaming revenue or deposits by gamers, sources told PTI.
The meeting of the GST Council, chaired by the Union finance minister and comprising her state counterparts, is likely to be held by the end of December after the conclusion of state elections in Gujarat and Himachal Pradesh to consider the report of the GoM on taxation of online gaming, casinos and horse racing.
Earlier in June, the Group of Ministers, under
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