28% GST on Online Gaming: The Central Board of Indirect Taxes and Customs (CBIC) is poised to implement the 28% GST (Goods and Services Tax) rate on online gaming, casinos, and horse racing beginning October 1, CBIC chairman Sanjay Agarwal said on Thursday.
28% GST on Online Gaming, Casinos, and Horse Racing
“We are fully prepared to implement it on October 1.”
According to the decision made at the most recent GST council meeting, the relevant notifications are currently in the works,” the CBIC chairman told the media.
This action is supported by all states and follows the recent passage of GST law amendments in the Lok Sabha.
Agarwal stated that, in order to impose a 28 percent GST on online gaming beginning October 1st, “all states must pass the bill in their legislatures or issue an ordinance by September 30.”
The 28 percent GST will be applicable to wagers placed for online gaming, the face value of coins purchased for casinos, and wagers placed with a bookmaker/totalisator for horse racing.
Numerous online gaming companies have already received notices requiring them to pay 28% GST instead of the current 18%.In its final session of the monsoon season, the Lok Sabha passed amendments to two GST laws by voice majority on August 11.
These amendments pertain to the Integrated Goods and Services Tax (Amendment) Bill, 2023 and the Central Goods and Services Tax (Amendment) Bill, 2023, which seek to implement a 28% GST on online gambling, casinos, and horse racing.
This legislative action is consistent with the August 2 decision made by the Goods and Services Tax (GST) Council at its 51st meeting.
The GST Council has recommended the addition of specific provisions to the 2017 IGST Act in order to ensure compliance.
These provisions include the obligation to pay GST on the supply of online money gambling from foreign suppliers to Indian customers, as well as measures to block access to any relevant information in the event of non-compliance.