Amended GST Law on E-Gaming, Casinos, and Horse Racing Effective from October 1: Finance Ministry of India
- Posted on September 30, 2023
- News
- By Sanchi
- 185 Views
The Finance Ministry of India has announced that
the amended Goods and Services Tax (GST) law provisions related to the taxation
of e-gaming, casinos, and horse racing will come into effect on October 1.
Under the changes to the Central GST Act, these
activities will now be categorized as "actionable claims," similar to
lottery, betting, and gambling. Consequently, they will be subject to a 28% GST
on the full face value of bets.
The amendments to the Integrated GST (IGST) Act
make it mandatory for offshore online gaming platforms to register in India and
pay taxes by domestic tax laws.
During sessions in July and August, the GST
Council, which consists of finance ministers from the federal government and
state governments, supported the decision to change the GST law.
The new provisions indicate that a tax of 28% will be
applied to the whole wager value and include online gambling, casinos, and
horse racing as taxable actionable claims.
The Central GST and Integrated GST statutes in
India were updated by the Indian Parliament last month to reflect the council's
decision.
The Finance Ministry's notification establishes
October 1 as the effective date for these provisions. Additionally, the GST
Council decided during its August meeting to review the implementation after
six months, in April 2024, to assess the impact and make any necessary
adjustments. This move represents a significant development in the taxation of
gaming and betting activities in India and aims to bring them in line with GST
regulations.
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