The All India Gaming Federation (AIGF) continues to work towards easing the environment for gaming in the country. In a latest move, the AIGF had approached the GST Council seeking a standard or lower tax rate for casino transactions, besides asking for a formulation of special rules for valuation in certain transactions that occur in this industry. The Goods and Services Tax (GST) that got introduced was expected to impact the gaming industry, once it got launched.
Roland Landers, CEO, AIGF declared that, “The transactions of the gaming industry are very different from the regular business transactions and thus require special attention and consideration. If the provisions of the model GST laws are applied as it is to the gaming transactions it will be against the very essence of the concept of GST i.e. to tax the value addition and would cause genuine hardship to the operators in the industry“.
Landers further said that casinos also contribute to society with employment generation and state revenues and therefore, should not be taxed at a higher rate. He went on to say that lower rates “will be in line with the global practices where the casino transactions are either taxed at a standard rate of GST, or are exempt from GST/VAT and other taxes.”
According to the report by the Business Standard, countries such as the UK, Australia and Malaysia should be emulated for their classic international standards. The AIGF referred to these and asked that valuation should be determined so that only the net value and not the gross value is taxed. The association also asked the GST Council to clarify several aspects pertaining to online transactions (physical venue involved) and to other areas, such as credit for such businesses, to allow smooth and litigation-free operations for the industry.