Goa Department of Commercial Tax Clarify Casino Transactions Are Liable For GST

GST
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  • PG News January 6, 2018
  • 2 Minutes Read

Goa is back in the news as on December 31, 2017, the Commercial Tax Department in Goa clarified that all casino transactions were liable for Goods and Services Tax (GST).

The commissioner of state GST and commercial taxes, Deepak Bandeka said that the implementation of GST saw the casinos shell out ₹40.11 crore in SGST in six months (July, 2017 – December, 2017). The clarification came in the wake of Congress MLA from Curtorim, Aleixo Reginaldo Lourenco alleging that casino bills were not being issued with GST.

Speaking to media on December 30, Lourenco alleged that the casinos were having a free run after the Bharatiya Janata Party (BJP) came to power in the state and demanded appointment of a Gaming Commissioner to monitor casino operations.

In the official statement, the department clarified that casinos were previously liable to pay entry fee of ₹1,000 and 15% gaming tax on sale of playing chips under the Goa Entertainment Tax Act, 1964.

The statement read, “From 1st July, 2017, the said Entertainment Tax is subsumed and all the transactions on casinos are liable to GST. Casino entry fee is charged as well as sale of playing chips are liable for 28 per cent GST (14% CGST+ 14% SGST). So also cooked food is charged @5% without input tax credit and liquor @22% under VAT. Till December 2017, casinos have paid 40.11 crore towards SGST in cash deducting the input tax credit available to them which was not available to them under the earlier Entertainment Tax.”

The statement also noted, “As regards the claim that bills are issued without mentioning GST, if such instances are brought to the notice, necessary action against the casino shall be initiated.”

India implemented GST on July 1 with 5 tax slabs of 5%, 12%, 18% and 28% with casino entry fee, entry into IPL matches and race courses set at the maximum 28% GST slab.

In December 2017, Goa Chief Minister Manohar Parrikar had stated that the long impending casino policy will be revealed soon. The policy is expected to be announced by next month. The main agenda for the policy seems to the relocation of the five operational offshore casinos out from River Mandovi. The draft policy may enforce the casinos to shift onshore but the casino vessels may be allowed to remain anchored in Mandovi for tourism activities.

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