28% tax on Online Gaming: During the monsoon session of Parliament, the Lok Sabha amended two Goods and Services Tax (GST) legislation to charge a 28% tax on online gaming, casinos, and horse race clubs.
Finance Minister Nirmala Sitharaman proposed two measures to amend the Central and Integrated GST rules, proposing a 28% tax on the total nominal value of bets in online gaming, casinos, and horse race tracks.
The proposed modifications include inserting clauses into Schedule III of the CGST Act, 2017 to provide precise rules for the taxation of casino, horse racing, and online gaming transactions.
Similarly, an amendment to the IGST Act proposes to impose GST requirements for overseas firms engaging in online money games, requiring them to register for GST in India.
Furthermore, the changes include provisions that will prevent access to offshore online gambling platforms if registration and tax payment requirements are not met.
The GST Council approved these revisions to the Central GST (CGST) and Integrated GST (IGST) laws the previous week.
Notably, the council approved a 28% GST on the total nominal value of entry-level wagers in the fields of online gambling, casinos, and horse racing.
Also read: Steady Fuel Prices on August 11 in Major Indian Cities: Petrol at ₹96.72/L, Diesel at ₹89.62/L in Delhi
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