GST on online gaming: Lok Sabha passed amendments to Central, Integrated GST laws to levy 28 pc tax on e-gaming, casinos on Friday (August 11).
Finance Minister Nirmala Sitharaman =introduced Bills seeking to amend the Central and Integrated GST laws to levy 28 per cent tax on the full face value of bets in online gaming, casinos and horse race clubs.
Sitharaman introduced the Central Goods and Services Tax (Amendment) Bill, 2023, and The Integrated Goods and Services Tax (Amendment) Bill, 2023 in Lok Sabha amid protests and uproar by the Opposition over the suspension of Congress leader Adhir Ranjan Chowdhury from the House.
Today is the last day of the Monsoon Session of the Parliament.
The states will get amendments in state GST law cleared by the respective assemblies once the amendments to CGST and IGST laws are passed.
Through the amendments, the government seeks to insert a provision in the Schedule III of the CGST Act, 2017, to provide clarity on the taxation of supplies in casinos, horse racing and online gaming.
The amendment in IGST Act relates to inserting a provision to impose GST liability on online money gaming provided by offshore entities.
Such entities would be required to get GST registration in India.
The amendments will also provide for blocking access to online gaming platforms located overseas in case of failure to comply with registration and tax payment provisions.
Last week, the amendments to the Central GST (CGST) and Integrated GST (IGST) laws were approved by the GST Council.
The council had approved levy of 28 per cent GST on full face value of entry level bets in online gaming, casinos and horse racing.
(With PTI inputs)