Introduced in the Lok Sabha: A bill to impose a 28% GST on online gaming and casinos
In order to impose a 28% tax on the entire face value of wagers placed in online gambling, casinos, and horse racing clubs, Finance Minister Nirmala Sitharaman submitted measures on Friday to alter the Central and Integrated GST laws.
In response to opposition complaints over the suspension of Congressman Adhir Ranjan Chowdhury from the House, Sitharaman submitted two bills in the Lok Sabha in 2023: the Central Goods and Services Tax (Amendment) Bill and the Integrated Goods and Services Tax (Amendment) Bill.
The monsoon session of Parliament ends on Friday. Similar changes to state GST legislation will be approved by the appropriate legislators after the CGST and IGST statutes have been amended and ratified.
The changes concern the addition of a clause to Schedule III of the CGST Act, 2017, which clarifies the taxation of commodities used in horse racing, casinos, and online gaming.
The IGST Act was amended to include a clause imposing GST responsibility on online gambling services offered by foreign organizations. Such organizations will have to register for GST in India.
In the event that the conditions for registration and tax payment are not followed, the changes will also include measures for restricting access to online gambling platforms with foreign locations.
The GST Council last week approved the changes to the Central GST (CGST) and Integrated GST (IGST) rules.
The council had authorized the imposition of a 28% GST surcharge on the entire face value of all first wagers made in online gambling, casinos, and horse racing.
