Lok Sabha Passes GST Amendment Levying 28% Tax On Online Gaming
On Friday, 11 August 2023, Lok Sabha passed the amendments to the Central and Integrated GST laws to levy a 28 per cent tax on the full face value of bets in online gaming, casinos and horse racing. The amendments are related to the insertion of a provision in the Schedule III of the CGST Act, 2017 which will clarify the taxation of supplies in casinos, horse racing and online gaming. Finance Minister Nirmala Sitharaman introduced bills in the House on Friday, the last day of the monsoon session of Parliament. States will now get the amendments passed in the state GST laws in their respective assemblies.
The IGST Act amendment pertains to inserting a provision to impose GST liability on offshore online gaming entities. These entities will now be required to get GST registration in India. These amendments will also allow the government to block access to overseas online gaming platforms in case they fail to comply.
The GST Council gave this decision a go-ahead on 2 August 2023 when they gathered for their 51st gathering after hearing the woes of online gaming industry leaders.
