Cabinet clears changes to GST laws to levy 28% GST on online gaming, casinos & horse race clubs

New Delhi, August 10, 2023 

The GST Council in its 51st meeting on August 2 had recommended amendments to the Schedule III of the CGST Act, 2017, to provide clarity on the taxation of supplies in casinos, horse racing and online gaming. 

Pursuant to the decision taken in the Goods and Services Tax (GST) Council meeting to levy 28 per cent tax on full face value of bets in online gaming, casinos and horse race clubs, the Union Cabinet on Wednesday approved the enabling changes to GST-related laws, sources said.

The amendments to the Central GST (CGST) and Integrated GST (IGST) acts, which were approved by the GST Council last week, are likely to be introduced in the ongoing monsoon session of Parliament, which will end on August 11. The GST Council in its 51st meeting on August 2 had recommended amendments to the Schedule III of the CGST Act, 2017, to provide clarity on the taxation of supplies in casinos, horse racing and online gaming.

The Council also recommended inserting a provision in the IGST Act, 2017, to impose GST liability on online money gaming provided by offshore entities. Such entities would be required to get GST registration in India. The amendments will also provide for blocking access to online gaming platforms located overseas in case of failure to comply with registration and tax payment provisions. The amended provisions in the GST laws — which would specifically define online gaming, online money gaming, virtual digital assets used to pay for online games and suppliers in case of online gaming — will be effective from October 1.

[The Indian Express]