Panel to examine Valuation of Services by Online Gaming companies
Government has constituted a panel of state ministers to examine valuation of services by online gaming to levy goods and services tax (GST). They will also examine services by casinos and race courses.
Panel comprises of seven-members, was convened by Gujarat Deputy Chief, Minister Nitin Patel. Other members include- Maharashtra Deputy Chief Minister Ajit Pawar, Arunachal Pradesh Deputy Chief Minister Chowna Mein, West Bengal Finance Minister Amit Mitra, Tamil Nadu Finance Minister P Thiagarajan, Goa Transport Minister Mauvin Godinho, and Karnataka Home Minister Basavaraj Bommai.
Function of the Panel
Panel will examine “valuation of services” as well as examine if any alternate legal provision is required to provide a better means of valuation for these services. It will also examine impact of such valuation on other services like lottery.
Whom to submit report?
Panel will submit its report, in six months, to GST Council headed by Union Finance Minister and comprising state Finance Ministers.
What was the need of panel?
In India, Online gaming is currently in nascent stages which thus leads to issues revolving around taxation and valuation. Thus, the panel has been set up to understand, examine and resolve uncertainty on valuation of services by these companies.
GST on Services
Presently, 18 percent GST is levied on services like casinos, horse racing and online gaming. Now, panel will decide method of valuing these services.
Month: Current Affairs - May, 2021
Category: Economy & Banking Current Affairs
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