India Set To Impose 28 Per Cent GST On Online Gaming From Tomorrow

The Union Finance Ministry has notified 1 October as the date for implementation of amended provisions under the GST law.

These changes will affect the taxation of e-gaming, casinos, and horse racing.

Under the amended Central GST Act, e-gaming, casinos, and horse racing will now be classified as "actionable claims," similar to lottery, betting, and gambling.

As a result, they will be subject to a 28 per cent GST on the full face value of bets.

The amendments to the Integrated GST (IGST) Act now require offshore online gaming platforms to register in India and pay taxes in accordance with domestic law.

These changes include the inclusion of online gaming, casinos, and horse racing as taxable actionable claims. It was also clarified that such supplies would be taxed at a rate of 28 per cent based on the full bet value.

Amendments to the Central GST and Integrated GST laws were passed by Parliament last month to implement the decision made by the GST Council. The Finance Ministry has now officially notified that the provisions will be implemented from 1 October.

During its meeting in August, the GST Council decided that the amended provision to classify these supplies as actionable claims and clarify the taxation provisions would take effect from 1 October.

A review of the implementation is scheduled to be conducted after six months, which is in April 2024.