Cabinet okays GST changes to betting on online games

livemint.com:

GST Council’s decision to ensure that 28% GST is paid on the full value of amounts deposited by players for betting on online games, casinos and horse races, three people familiar with the development said. The cabinet clearance to the bill enables the government to place amendments to Central GST laws in Parliament in the ongoing session, which is on till Friday. This is required to enable even state governments and two Union territories with Assemblies to clear amendments to SGST law in time for the new taxation to be enforced from 1 October.

Queries emailed to the finance ministry and the cabinet secretariat remained unanswered. In its 51st meeting, the GST Council decided that effort will be made to complete the process of making amendments to the Act at the earliest so that the changes come into effect from 1 October 2023. This can only happen once the Centre amends the CGST (including the amendment in Schedule III of CGST Act, 2017), IGST and UT GST laws, and states bring similar changes in SGST Acts.

The GST Council had on 2 August cleared the legislative changes needed at central and state levels for ensuring that 28% tax on the full value of bets is paid in these industries. The Council also then decided to exclude any winnings redeployed from the purview of indirect taxation and to review the new regime after six months of implementation. In the meeting, the council also decided to require registration of offshore gaming platforms serving Indian consumers and to collect GST from them.