New Delhi, Oct 2:Ā The Finance Ministry notified the amendments in the GST law provisions for taxing online gaming, casinos, and horse racing. The amended law came into effect from October 1. The notification also expands the list of specified “actionable claims” to include online money games, casinos, horse racing, betting, gambling, and lotteries. The government also notified new regulations for online gaming companies seeking registration in the country.As per the amendments to the Central GST Act, these transactions will now be categorised as “actionable claims,” aligning them with lottery, betting, and gambling, and they will be subject to a 28 per cent Goods and Services Tax (GST) based on the total face value of the bets. Simultaneously, revisions to the Integrated GST (IGST) Act now require offshore online gaming platforms to register in India and adhere to domestic tax regulations by paying taxes accordingly.
In July and August, the GST Council, comprising finance ministers from both the central and state governments, approved changes to the law. These changes included the inclusion of online gaming, casinos, and horse racing as taxable actionable claims. It was clarified that such transactions would be subject to a 28 per cent tax based on the full bet value.
The GST Council, during its August meeting, decided that the revised provisions regarding the classification of these transactions as actionable claims and the clarification of taxation rules would take effect from October 1. A review of the implementation is scheduled for April 2024, after six months.