Amended GST Law on E-Gaming, Casinos, and Horse Racing Effective from October 1: Finance Ministry of India

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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