The All India Gaming Federation (AIGF) has reportedly written to the GST Council, asking for a lower tax rate on casino transactions, local media reports.
“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 law are applied as it is to the gaming transactions it will be against the very essence of the concept of GST,” said AIGF CEO Roland Landers.
“The transactions in the casino business should not be taxed at a rate higher than the standard rate considering the social contribution which they make by generating employment, state revenues for social welfare activities etc. Also, such practice 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,” he added.
AIGF has also requested special rule formulation for determining valuation, so that only the net retention i.e. the value addition in the transaction is taxed, rather than the gross value.