Online Gaming to Incur 28% GST Starting October 1

This decision, supported by all states, aligns with recent Lok Sabha-approved GST law amendments, effective from October 1. CBIC Chairman Sanjay Agarwal declared a 28% GST rate for Indian online gaming, effective October 1.

This decision has unanimous support from all Indian states and follows recent amendments to GST laws approved by the Lok-Sabha. The CBIC Chairman stressed that unanimous state consent and legislative approval are crucial for establishing the GST-rate on online gaming.

Lok Sabha’s August 11 amendments mainly aim to introduce a 28% GST rate for online gaming, casinos, and horse racing. These legislative changes align with the decision made during the 51st meeting of the Goods and Services-Tax(GST) Council on August-2.

The GST Council aims to expedite the process of amending relevant Acts to impose taxation on gaming,casinos,and horse racing. The amendments provide clarity on the taxation of supplies in casinos, horse racing, and gaming.

To ensure compliance, the GST Council will insert specific provisions into the IGST Act, 2017, addressing GST liability for online money gaming from foreign suppliers to Indian customers. They will also implement measures to block access to related information in case of non-compliance.

The GST Council recommends valuing online gaming and actionable claims in casinos based on the amount paid or payable to the supplier by or on behalf of the player, excluding previous winnings.

The uniform 28% GST rate for Casinos, Horse Racing, and Online Gaming, regardless of skill or chance, aims to create a consistent taxation framework and resolve ambiguities.

India’s online gaming tax aligns with its goal of integrating sectors into the GST framework and enhancing tax collection.

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