Finance Ministry has notified October 1 as the date for implementation of the amended GST law provisions for taxing e-gaming, casinos and horse racing.
The amendments to the Integrated GST (IGST) Act make it mandatory for offshore online gaming platforms to take registration in India and pay taxes in accordance with domestic law.
With the changes to the Central GST Act, these supplies will henceforth be treated as “actionable claims” similar to lottery, betting and gambling and subject to 28% GST on full face value of bets.
It is to be noted that in the GST meetings in July and August, the council had approved amendments to the law to include online gaming, casinos and horse racing as taxable actionable claims, and clarified that such supplies would attract 28% tax on full bet value.
GST Council in its meeting in August had decided that the amended provision to classify these supplies as actionable claims and clarifying the taxation provisions would come into effect from October 1.
“We are ready to implement a 28 per cent GST rate on online gaming from October 1 with the consent of all the states. The law for GST rate on online gaming will have to be passed by the assembly of states. Show cause notices to some online gaming companies are legal process,” said CBIC Chairman Sanjay Agarwal.
The Council had resolved to expedite the process of amending the relevant Acts necessary to impose taxation on online gaming, casinos, and horse racing.
GST Council has advised that the valuation of online gaming and actionable claims in casinos should be based on the amount paid or payable to the supplier by or on behalf of the player.
Last month, Parliament passed amendments to the CGST and IGST laws to give effect to the Council’s decision.
With this, Finance Ministry has now notified that October 1 will be the appointed date for implementation of these provisions.