Finance ministers from seven states will meet later this week to finalise the levying of goods and service tax on the sector, a move that is anticipated to hit India's online gaming industry. The ministers' plan would tax online gaming in India at the same rate as betting and gambling, which are presently subject to a GST surcharge of 28%.

Officials said that the group of state finance ministers would be meeting in Bengaluru on July 23 to finalise the GST on online gambling.  The federal GST Council, which is chaired by finance minister Nirmala Sitharaman, will review the proposal of the group of state finance ministers.

A suggestion to apply the 28% tax to the total face value or wager amount in an online game instaead of the net amount after deducting prize money will also be discussed by the group of state finance ministers.

It has been determined that in the case of casinos, the tax should only be applied to the amount paid at the point of entrance, or when acquiring chips, rather than to each and every transaction. It is recommended to keep the current practise of applying a 28% GST on the total amount wagered in horse racing.

Conrad Sangma, the chief minister of Meghalaya, is in charge of the group of state finance ministers. The finance ministers of Goa, Uttar Pradesh, Gujarat, Tamil Nadu, and Maharashtra as well as revenue officials from Telangana are also expected to attend the conference.

GST: Pre-packed, labelled food items will charge 5-pc GST from today

GST on food items: Traders hold protest, Grain markets closed

Finance Min seeks industry inputs on changes to monthly GST payment form