Lok Sabha Approves Amendments to GST Laws to Levy 28% Tax on Online Gaming on Last Day of Monsson Session
11 August, 2023 | Anamika Singh Parihar
The Lok Sabha approved amendments to the Central Integrated Goods and Services Tax (GST) regulations, imposing a 28% tax on online gaming and casinos.
On Friday, August 11, the Lok Sabha approved amendments to the Central Integrated Goods and Services Tax (GST) regulations, imposing a 28% tax on online gaming and casinos.
Finance Minister Nirmala Sitharaman tabled The Central Goods and Services Tax (Amendment) Bill, 2023, and The Integrated Goods and Services Tax (Amendment) Bill, 2023, in the Lok Sabha on Friday despite opposition protests regarding the suspension of Congress leader Adhir Ranjan Chowdhury from the House.
With the final day of the monsoon session of Parliament on Friday, state assemblies can now enact comparable amendments in their individual GST laws following the passage of amendments to CGST and IGST laws.
The changes involve adding a new rule to Schedule III of the CGST Act, 2017, to offer clear guidance on how taxation applies to activities in casinos, horse racing, and online gaming.
Similarly, the amendment to the IGST Act introduces a provision to impose GST responsibility on online money gaming conducted by foreign entities. These entities would need to register for GST in India.
The amendment will also enable the blocking of access to foreign-based online gaming platforms if they don’t adhere to registration and tax payment requirements. The amendments to the laws were endorsed by the GST Council the previous week. Earlier, the council had sanctioned a 28% GST on the complete initial wager amount in online gaming, casinos, and horse racing.
The no-confidence motion against the government failed in the Lok Sabha on August 10.
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