The Lok Sabha has given its approval to changes made in two Goods and Services Tax (GST) bills. These changes focus on imposing a 28% tax on activities like online gaming, casinos, and horse race clubs. These amendments were introduced by Finance Minister Nirmala Sitharaman during the monsoon session of Parliament.
The purpose of these changes is to modify the Central and Integrated GST laws. The proposed tax rate of 28% would be applicable to the entire nominal value of bets placed in online gaming, casinos, and horse race clubs. This move is aimed at generating revenue from these sectors.
The bills that were passed are known as the Central Goods and Services Tax (Amendment) Bill, 2023, and The Integrated Goods and Services Tax (Amendment) Bill, 2023. Despite some protests, these bills were approved in the Lok Sabha.
The key changes include adding new clauses to Schedule III of the CGST Act, 2017. These clauses provide clear guidelines for how transactions related to casinos, horse racing, and online gaming should be taxed. Similarly, amendments within the IGST Act stipulate that offshore entities involved in online money gaming must register for GST in India.
Furthermore, these revisions include provisions that allow authorities to block access to offshore online gaming platforms if they fail to comply with registration and tax payment requirements in India.
It’s worth noting that these amendments received the green light from the GST Council in the previous week. The council agreed to impose a 28% GST on the total nominal value of bets placed in online gaming, casinos, and horse racing. This decision was taken with the aim of bringing in additional tax revenue.