NEW DELHI
The Lok Sabha passed amendments to two Goods and Services Tax (GST) bills, imposing a 28% tax on online gaming, casinos, and horse racing clubs during the monsoon session of Parliament. Union Finance Minister Nirmala Sitharaman introduced the two bills: the Central Goods and Services Tax Amendment Bill, 2023, and the Integrated Goods and Services Tax Amendment Bill, 2023, in the lower house of Parliament.
Changes Proposed in the Amendment:
The modifications include adding clauses to Schedule III of the Central Goods and Service Tax (CGST) Act, 2017. The intention is to provide clear guidelines for the taxation of activities within casinos, horse racing, and online gaming.
Another amendment to the Integrated Goods and Service Tax (IGST) Act establishes GST responsibilities for foreign entities engaged in online money gaming. Such entities are now required to register for GST in India. Additionally, provisions have been introduced to block access to offshore online gaming platforms if they do not comply with the registration and tax payment obligations. These changes to the Central GST (CGST) and Integrated GST (IGST) laws received approval from the GST Council. Consequently, the council approved the implementation of a 28% GST on the total nominal value of initial bets in online gaming, casinos, and horse racing.