Parliament clears 28% GST on online gaming, casinos, horse racing clubs
New Delhi: Parliament on Friday approved legislative changes required to implement the Goods and Services Tax (GST) Council's decision to ensure that 28% tax is paid on the full value of deposits made by players to online gaming platforms, horse racing clubs and to casinos from 1 October. The Lok Sabha and the Rajya Sabha approved the Central Goods and Services Tax (Amendment) Bill, 2023, and the Integrated Goods and Services Tax (Amendment) Amendment Bill, 2023, which will be brought into effect from October.
In the case of online gaming platforms, 28% GST applies only where wagering is involved and not on any services provided by those hosting casual games. Parliament approval for the legislative changes on the last day of the monsoon session indicates the tax law changes are on course to be implemented as had been decided by the GST Council, from October.
States also have to clear changes to state GST laws in this regard. The amendments do not affect tax on casual online gaming in which no real money or betting or wager is involved, explained a government official, who spoke on condition of 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 are part of the amendments. Non-compliant offshore gaming platforms or websites will be blocked.
Experts described the definitions included in the amendments such as defining 'online gaming', 'online money gaming', 'specified actionable claim' and 'virtual digital asset' as "unambiguous." "With these amendments, online gaming companies shall not expect any litigation in respect of the charge of GST prospectively. However, litigation
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