Gambling and going to the movies will soon come with a hefty price tag in India.
Last week, the constitutional body tasked with overseeing the goods and services tax (GST) system announced four new tax slabs—5, 12, 18 and 28 percent—for a host of services under the new indirect tax regime that will be rolled out from July 1.
Gambling and race club betting have been grouped in the same tax bracket with other “luxury” services such as cinemas and five-star hotels, and as such, will attract a 28 percent tax. Entry fees in casinos or other entertainment events will also be charged the highest GST rate, but there is no proposal yet to impose additional tax on gambling and betting activities.
Union Finance Minister Arun Jaitley, who chairs the GST Council, said it’s only fair that cinema halls, casinos and betting centers are placed in the highest tax slab because entertainment and luxury taxes are already merged with service tax in GST.