GST Hike: Online gaming to bear 28% tax burden from Oct 1
GST Hike: The GST Council decided at its 51st meeting on Wednesday to complete the process of revising the relevant Acts required for taxation on online gaming, casinos, and horse racing as soon as possible and to begin taxing these items on October 1, 2023.
The council met today and recommended changes to the CGST Act 2017 and the IGST Act 2017 to clarify the taxation of supplies in casinos, horse racing, and online gaming.
The Council also recommended that a specific provision be added to the IGST Act, 2017 to provide for the liability to pay GST on the supply of online money gaming by a supplier located outside India to a person in India, for the said supplier to have a single registration in India through a simplified registration scheme, and for the public to be denied access to any information generated, transmitted, received, or hosted in any computer resource used for the supply of online money gaming.
The Council also recommended that the supply of online gaming and actionable claims in casinos be assessed based on the amount paid or payable to or deposited with the supplier, by or on behalf of the player (excluding the amount entered into games/bets out of previous game/bet winnings), rather than the total value of each bet placed.
Notably, at its 50th meeting on July 11, the GST Council suggested that casinos, horse racing, and online gaming be taxed at a rate of 28% on full face value, regardless of whether the activities are a game of skill or chance. The Council also suggested that the law be amended to provide clarity on the matter.
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- With inputs from agencies
