On June 29, the GST council will discuss state compensation for online gaming and casinos and the Goods and Services Tax (GST).

According to a person familiar with the council’s discussions in Chandigarh on June 28, the Group of Ministers’ interim report on interest rate rationalisation was entirely accepted on the first day of the meeting.

A separate report on reforms to the GST system submitted by a Group of Ministers led by Ajit Pawar was also accepted as the committee’s deliberations are private.

Finance Minister Nirmala Sitharaman will speak to the media on the GST council’s decision on June 29. The briefing could take place at 4 pm.

Two heavyweight topics will be discussed on the second day of the conference. There is widespread speculation that the council will approve a 28% GST on casinos, racetracks and online gaming, based on recommendations from a Group of Ministers led by Conrad Sangma.

The second subject of state compensation is also scheduled for discussion on June 29. Under the law, states’ income security is increased by 14% annually, and the Compensation Cess Fund will cover shortfalls. However, this income guarantee is only for five years, ending June 30. As a result, some states have contacted the centre to extend the compensation period beyond this month.

On June 28, Chattisgarh GST Board representative TS Singh Deo wrote to Sitharaman asking for a five-year extension of the guaranteed income for the states. According to Deo, Chattisgarh has suffered nearly Rs 14,000 crore in lost revenue over the past four years due to the GST regime.

While such losses may have been compensated so far, Deo believes that states like Chattisgarh may not have the funds for capital, social sector and job creation once the compensation is over.