Parliament clears 28% GST on online gaming, casinos
GST) Council’s proposal to levy a 28% tax on the full value of deposits made by individuals to online gaming platforms, casinos, and horse racing clubs. According to a notification issued on Friday, the legislation will be effective from 1 October. Both Houses of Parliament have endorsed the Central Goods and Services Tax (Amendment) Bill, 2023 and the Integrated Goods and Services Tax (Amendment) Bill, 2023.
The laws will come into effect in October. It’s important to note that the 28% GST applies solely to instances involving wagering on gaming sites. GST will not be imposed on casual gaming services offered by the platforms.
Parliament approval for the legislative changes on the last day of the monsoon session indicates that the new tax laws will be implemented as decided by the GST Council. States will also have to clear the changes to State GST laws to implement the law. The amendments will not affect tax on casual online gaming, wherein no real money, betting, or wager is involved, said a government official, seeking anonymity.
A simplified but mandatory GST registration for overseas platforms offering online money gaming services to Indian consumers, and a special provision bringing tax liability on such platforms, were part of the amendments. Non-compliant offshore gaming platforms or websites will be blocked. However, experts said the definition of “online gaming", “online money gaming", “specified actionable claim", and “virtual digital asset" in the amendment are still “ambiguous".
“With the amendments, online gaming companies shall not expect any litigation in respect of the charge of GST, prospectively. However, litigation for the old period will continue. The regulations clarified that international
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