28 per cent GST rate on online gaming from October 1

The announcement comes nearly two months after the Lok Sabha had passed amendments to two GST laws on online gaming with a voice vote.

Published on: Sep 28, 2023, 16:59:32 IST

By HT News Desk

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India is set to implement a 28 per cent Goods and Service Tax on online gaming from October 1. The announcement was made by Central Bord of Indirect Taxes and Customs chairperson Sanjay Agarwal on Thursday.

“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", ANI quoted Agarwal as saying.

The announcement comes nearly two months after the Lok Sabha had passed amendments to two GST laws with a voice vote. The amendments are related to the insertion of provision in the third schedule of CGST Act, 2017 to provide clarity on the taxation of supplies in the casinos, horse racing and online gaming.

On the other hand, amendment in the 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 council recommended that valuation of supply on online gaming & actionable claims in casinos may be done based on the amount paid or payable or payable to or deposited with the supplier by/or on behalf of the player, excluding the amount entered into the games, bets out of winnings of previous games & not on the total value of each bet placed", Sitharaman had announced in the briefing held after the meeting on August 2.

The review of the GST on online gaming and casinos is likely to be taken in the next fiscal.

The review of the GST on online gaming and casinos is likely to be taken in the next fiscal. (REUTERS)

The Centre has said that these amendments will provide much-needed clarity regarding the taxation of supplies in casinos, horse racing, and online gaming.

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HT News Desk
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