Curated By: Business Desk
Last Updated: September 29, 2023, 13:25 IST
The amendments to two GST laws were passed in the Lok Sabha during its final session of the monsoon season.
This decision was taken on the recommendation of a group of ministers looking at taxing casinos, horse racing, and online gaming.
The Goods and Services Tax (GST) Council, earlier in July, announced a 28 per cent tax on the turnover of online gaming companies, horse racing, and casinos. Finance Minister Nirmala Sitharaman, along with the representatives of all states and UTs, took the decision on the recommendation of a group of ministers looking at taxing casinos, horse racing, and online gaming. As per the recent reports, the implementation of this GST rate will be effective from October 1. Central Board of Indirect Taxes and Customs (CBIC) Chairman, Sanjay Agarwal, confirmed that India is all set to implement a 28 per cent GST on online gaming from the first day of October itself. Sanjay Agarwal said in an interview, “We are ready to implement a 28 per cent GST rate on online gaming from October 1, with the consent of all the states. The law for the GST rate on online gaming will have to be passed by the assembly of states. Show cause notices to some online gaming companies are a legal process.”
The amendments to two GST laws were passed in the Lok Sabha during its final session of the monsoon season. The amendments were made to the Integrated Goods and Services Tax (Amendment) Bill, 2023, and the Central Goods and Services Tax (Amendment) Bill, 2023.
The GST council has also recommended inserting specific provisions in the IGST Act, 2017. This move will ensure compliance with the newly introduced laws. The provisions are related to the liability to pay GST on the supply of online money gaming from foreign suppliers to Indian customers. They also deal with blocking access to any related information for those who do not comply with the laws.
The GST Council, meanwhile, also advised that the valuation of online gaming in casinos should be done on the basis of the amount that has been paid or payable to the supplier by the player. It is necessary to note that the decision to impose a tax on online gaming has been taken under the government’s efforts to bring various sectors under the GST framework while streamlining tax collections.
