NEW DELHI, July 26 (Reuters) – India’s Goods and Services Tax (GST) Council will meet on Aug. 2 to determine on a 28% tax on funds that on-line gaming corporations and casinos gather from clients, and finalise different guidelines, a authorities official mentioned on Wednesday.

The council, chaired by India’s Finance Minister Nirmala Sitharaman and comprising state finance ministers, will determine if the tax needs to be imposed solely as soon as on the whole funds deposited to play a web based recreation, or every time a wager is positioned – one thing the trade fears will result in repeated taxation.

The official requested to not be named as a result of he was not authorised to talk to the media. The Finance Ministry and GST Council Secretariat didn’t instantly reply to a Reuters request for remark.

Since the federal government first introduced its plan for the tax on July 11, the gaming industry and its traders have requested it to assessment the choice, which is able to improve the tax burden on each corporations and customers.

Last week, Tiger Global, Peak XV and Steadview Capital have been among 30 overseas and home traders that requested Prime Minister Narendra Modi to assessment the tax, saying the levy would adversely influence $4 billion in potential investments.

India’s income secretary, Sanjay Malhotra, informed an area tv channel on Tuesday that “the taxation, as has been claimed by the gaming industry, becomes very high in case it is taxed at each and every bet. That’s true, it’s a fact.”

This could be taken under consideration when a last resolution is taken by the GST Council, Malhotra informed NDTV.

Reporting by Nikunj Ohri; Editing by Savio D’Souza

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