Increase capital assistance to states: CM to FM

New Delhi, Nov 25: Chief Minister Conrad Sangma on Friday demanded an increase in capital assistance given to the states, during the first pre-budget meeting with the Union Finance Minister Nirmala Sitharaman in New Delhi.
“Have asked for a system where it should be linked to the population. Village-based schemes should be stressed on,” Sangma said after the meeting.
His demand was also echoed by other states during the pre-budget consultation.
States in general have demanded more funds, greater say in implementing centrally-sponsored schemes and an increase in payments for royalty on minerals.
Conrad Sangma, who heads the Group of Ministers (GoM) on casinos, race courses and online gaming, also held the final meeting addressing the issue of online gaming platforms coming under the ambit of taxation.
It is believed that 28 per cent GST will be levied on casinos, online gaming and horse racing, irrespective of whether it is a game of skill or chance.
Currently, 18 per cent GST is levied on the gross revenue earned from the fees charged by online gaming platforms.
However, in the absence of a consensus on whether the tax should be levied only on the fees charged by the portal or the entire consideration, including bet amount received from participants, the GoM has decided to refer all the suggestions to the GST Council for a final decision.
The state finance ministers’ panel will submit its report to the GST Council next week, Conrad informed.
Once formally approved by the GST Council, which is chaired by Finance Minister Nirmala Sitharaman, the proposal, according to sources in the government, will bring the GST on online gaming in India at par with betting or gambling, which already carries a 28 per cent GST.
The GoM had earlier submitted a report to the Council in June wherein it had suggested a 28 per cent GST on the full value of the consideration, including the contest entry fee, paid by the player without making a distinction such as games of skill or chance. However, the Council had then asked the GoM to reconsider its report.