Legislations for taxation of online gaming, casinos, horse racing cleared by Lok Sabha
Aug 11, 2023
New Delhi [India], August 11 : Lok Sabha on Friday passed amendments in two Goods and Service Tax (GST) laws with a voice note and without much debate, just before the Lower House was adjourned sine die.
Today was the last session of the monsoon session of Parliament.
The legislations -- the Integrated Goods and Services Tax (Amendment) Bill, 2023 and Central Goods and Services Tax (Amendment) Bill, 2023 -- were moved in Lok Sabha to make way for imposing a 28 per cent Goods and Services Tax (GST) for online gaming, casinos, and horse racing.
The GST Council in its 51st meeting held on August 2 decided to complete the process of making amendments in the relevant Acts needed for taxation on online gaming, casinos, and horse racing “at the earliest” and start taxing these items effective from October 1, 2023.
These amendments, according to the central government, will provide clarity on the taxation of supplies in casinos, horse racing and online gaming.
The GST Council had recommended to insert a specific provision in IGST Act, 2017 to provide for liability to pay GST on the supply of online money gaming by a supplier located outside India to a person in India, and also for blocking of access by the public to any information generated, transmitted, received or hosted in any computer resource used for supply of online money gaming by such supplier in case of failure to comply with provisions of registration and payment of tax.
The Council also recommended that valuation of supply of online gaming and actionable claims in casinos may be done 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 winnings of previous games/ bets) and not on the total value of each bet placed.
Notably, the GST Council in the 50th meeting held on July 11 had recommended Casinos, Horse racing and Online gaming may be taxed at the rate of 28 per cent on full face value, irrespective of whether the activities are a game of skill or chance. The Council had also recommended that the law may be amended to provide clarity in the matter.
