GST Council On Online Gaming: The GST officials of the Center and the states are working with experts in the online gaming sector on the interpretation of 'skill games' and 'luck games' so that separate taxation frameworks will be created for both types of games. To be. Sources gave this information.

The tricky issue of imposition of Goods and Services Tax ( GST ) on online games has been a matter of controversy for over a year now. Several states have demanded a lower rate of taxation on online games that require skill.

He is of the opinion that games of skill should not be equated with games of luck. In the absence of a clear definition of these games, many times tax notices are sent to online game portals and later legal disputes start.

Sources said the issues related to the definition of 'games of chance' and 'games of skill' were discussed with experts in the technical sector at a meeting of the legislative committee of the GST Council in Bengaluru on Saturday. In the absence of all the states in the legislative committee, the draft report on the definition will be shared with all the states and their opinion will be sought on it.

The GST Council will consider the report of the Group of Ministers on taxation on sports like online gaming, casinos and horse racing in a meeting to be held in late December. The GoM had in June suggested that the online gaming sector should be taxed at the rate of 28 per cent.

However, there is a demand from the industry that skill games should be taxed at a lower rate as the prize money would have to be reduced if the tax rate is higher. At present, GST is levied at the rate of 28 per cent on accidental games.