The Lok Sabha has approved changes, to the laws governing Central and Integrated GST. As a result, a tax of 28% will be imposed on the value of bets placed in gaming, casinos, and horse racing. Finance Minister Nirmala Sitharaman presented these bills despite facing opposition protests. The amendments specifically highlight the GST responsibilities of providers involved in money gaming and grant authorities the power to block access, to overseas gaming platforms that fail to comply with these obligations.
In a significant development, the Lok Sabha has given its nod to amendments in the Central and Integrated GST (Goods and Services Tax) laws. These amendments mark a substantial shift as they introduce a 28 percent tax on the complete face value of wagers in domains like online gaming, casinos, and horse racing clubs.
Putting forth the bills on Friday, Finance Minister Nirmala Sitharaman seized the final day of the monsoon session of Parliament. However, this move was accompanied by opposition protests centered around the suspension of Congress leader Adhir Ranjan Chowdhury.
During a voice vote, without entering into a formal debate, the Lok Sabha passed both The Central Goods and Services Tax (Amendment) Bill, 2023, and The Integrated Goods and Services Tax (Amendment) Bill, 2023. The spotlight now shifts to the states, as they are tasked with incorporating these amendments into their respective state GST laws.
The crux of these amendments revolves around the incorporation of a new provision within Schedule III of the CGST Act, 2017. This provision is aimed at bringing lucidity to the taxation framework concerning activities within casinos, horse racing, and online gaming.
Shifting our focus to the Integrated GST Act, these amendments involve the insertion of a provision aimed at imposing GST obligations on offshore entities providing online money gaming services. In effect, these entities will be obligated to register for GST within India.
Furthermore, these amendments encompass provisions for the potential blocking of access to overseas online gaming platforms. This step would be taken in instances where non-compliance with registration and tax payment obligations occurs.
It’s important to note that the amendments to both the Central GST (CGST) and Integrated GST (IGST) laws had already gained the stamp of approval from the GST Council. In a decision taken last week, the council had given the green light for the imposition of a 28 percent GST on the complete face value of entry-level bets in the domains of online gaming, casinos, and horse racing.
