In the proposed amendment to the GST Act and Rules to tax online gaming, suitable modifications should be made by taking into account the state law banning online gambling, the Tamil Nadu government conveyed to the GST Council on Wednesday.
In the 51st GST Council meeting, Tamil Nadu Finance Minister Thangam Thennarasu expressed strong reservations in respect of a certain clause in the proposals for amendment to GST Act and Rules in view of the TN Prohibition of Online Gambling and Regulation of Online Games Act, 2022 (banning online Rummy and Poker).
The GST meet, chaired by Union Finance Minister Nirmala Sitharaman was held through video conferencing today. The agenda of meeting included draft proposals to amend the GST Act and Rules for levy of GST on online gaming, casino and horse racing.
Thennarasu underscored the ban on online gambling (online wagering or betting), playing any online games of chance for money or other stakes, which are punishable offences in Tamil Nadu.
Expressing serious concern, the minister said the proposed amendments should conform to the State legislation and suggested modification of a specific clause in the draft proposals.
Thennarasu suggested that the definition of 'Online money gaming' in the Act should not include games where the performance or outcome is based on chance or where it is barred by or under any law for the time being in force.
He insisted that the modification suggested by the Tamil Nadu government should be incorporated in the proposed amendments to the GST Act and Rules.
"The GST Council assured to make suitable modification in amendments based on the suggestions of the Minister
for Finance and Human Resources Management of Tamil Nadu," an official release here said.
The Tamil Nadu law banning online gambling was challenged by gaming companies and the mater is before the Madras High Court.
Principal Secretary (Finance), T Udhayachandran, Secretary (Commercial Taxes--Registration), B Jothi Nirmalasamy, Principal Secretary and Commissioner of Commercial Taxes, Dheeraj Kumar took part in the meet.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
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