New Delhi [India], July 12 (ANI): Union Finance Minister Nirmala Sitharaman on Tuesday said that the GST Council has decided to impose 28 per cent tax on the turnover of online gaming, horse racing and casinos on full face value.
Nirmala Sitharaman who chairs the GST Council, said that the government has offered exemption on GST for satellite launch services provided by private organisations.
“We have offered exemption on GST for satellite launch services provided by private organisations… Online gaming, horse racing and casinos will be taxed at 28 per cent (all three activities) and they will be taxed on full face value,” she said.
The 50th meeting of the GST Council was held on Tuesday here in the national capital.
She further said that the tax on online gaming companies would be imposed without making any differentiation based on whether the games required skill or were based on chance and will be levied on the entire value.
The minister also said that the GST rates on uncooked or unfried extruded snack pallets brought down from 18 per cent to 5 per cent; on fish soluble paste, rates have been bright down to 5 per cent from 18 per cent; rates on imitation zari threads brought down to 5 per cent from 12 per cent.
“The GST Council also decided to exempt cancer fighting drugs and medicines for rare diseases from the levy,” the minister added.
Goods and Services Tax was introduced in the country with effect from July 1, 2017, and states were assured compensation for loss of any revenue arising on account of its implementation as per the provisions of the GST (Compensation to States) Act, 2017 for a period of five years.
For providing compensation to States, Cess was being levied on certain goods and the amount of Cess collected was being credited to Compensation Fund. The compensation to States was being paid out of the Compensation Fund with effect from July 1, 2017. (ANI)