Mint Explainer: What does GST law amendments say?

livemint.com:

online games and those involving a wager. Only the actionable claims offered by 'online money games' are subject to 28% tax on the full value of the deposits made to a platform. Online money games are those in which the player deposits an amount in the expectation of winning some amount in a game or event.

The amendments do not affect the tax on casual online gaming in which no real money or betting or wager is involved. The amendments make it clear that the activity of online money gaming will be taxed on the total amount paid to the supplier by the player, irrespective of whether the game is based on skill or chance or both. Also, any payments made by crypto assets will also be taxable.

The amendments implementing 28% tax will be effective from 1 October. The government is of the view that the legislative changes are clarificatory and that these sectors have always been under 28% GST. However, any recovery of disputed outstanding tax liability of the online gaming platforms till the changes are effective on 1 October is likely to depend on the decision of the Supreme Court as the Central government has filed a special leave petition contesting a Karnataka High Court Order which favoured industry players on the tax dispute.

While proposing the changes to GST laws, the Council had recommended that the valuation of the supply of online gaming and actionable claims in casinos may be done based on the amount paid or deposited by the player to the supplier, excluding the winnings of previous games or bets. The amendments offer this relief. Besides, the Council had decided to review the effect of these changes and the valuation rules after six months from October.