28% Tax on Online Gaming: GST Amendment Bills Receive President’s Assent

On August 18, 2023, the GST Amendment Bills, levying a tax of 28% on the full face value of bets in online gaming, casinos and horse race clubs, received the assent of the Hon’ble President, Droupadi Murmu. The said Bills were introduced and passed by the Parliament on August 11, 2023, following the GST Council’s recommendations.

As per the amendment, online gaming has been defined as the “offering of a game on the internet or an electronic network and includes online money gaming“. It is specified that persons who organise or arrange the supply of actionable claims involved in or by way of betting, casinos, gambling, horse racing, lottery or online money gaming would be deemed to be suppliers of the specified actionable claims. The provisions of the Central Goods and Services Tax Act, 2017 would apply to such persons as if they are suppliers liable to pay tax in respect of the supply of such actionable claims.[1]

Further, integrated tax would be payable on the supply of online money gaming by a supplier located outside India to a person in India. Such suppliers are required to obtain a single registration through the simplified registration scheme.[2]