Lok Sabha passes amendments to 2 GST bills for 28% tax on online gaming
The Central Goods and Services Tax (Amendment) Bill, 2023, and The Integrated Goods and Services Tax (Amendment) Bill, 2023, were passed in the Lok Sabha.
The Lok Sabha has passed amendments to two Goods and Services Tax (GST) bills for levying 28 per cent tax on online gaming, casinos and horse race clubs during the monsoon session of Parliament.
Finance Minister Nirmala Sitharaman introduced the two bills to modify the Central and Integrated GST laws, proposing a 28 per cent tax on the complete nominal value of wagers in online gaming, casinos, and horse race clubs.
The Central Goods and Services Tax (Amendment) Bill, 2023, and The Integrated Goods and Services Tax (Amendment) Bill, 2023, were passed amid protests.
What are the proposed changes?
The proposed changes involve introducing clauses into the Schedule III of the CGST Act, 2017, aimed at offering explicit guidelines for the taxation of transactions within casinos, horse racing, and online gaming.
Similarly, within the IGST Act, an amendment seeks to establish GST obligations for offshore entities engaged in online money gaming, mandating their registration for GST within India.
Moreover, the revisions encompass provisions to halt access to offshore online gaming platforms in instances of non-compliance with registration and tax payment requirements.
These amendments to the Central GST (CGST) and Integrated GST (IGST) laws secured approval from the GST Council in the preceding week.
Notably, the council sanctioned the imposition of a 28 per cent GST on the total nominal value of entry-level bets within the domains of online gaming, casinos, and horse racing.
