Implementation Date for GST Amendments on Online Gaming

• 03 Oct 2023

The Finance Ministry has officially designated October 1 as the commencement date for the amended provisions in Central GST and Integrated GST laws.

Key Points

• GST Amendments: Online gaming, casinos, and horse racing are now categorized as "actionable claims" and subject to a 28% Goods and Services Tax (GST) on the full-face value of bets, in line with lottery, betting, and gambling.
• IGST Act Amendments: Offshore online gaming platforms are now required to register in India and pay 28% tax as per domestic law.
• Access Blocking: Provisions have been made to block access to overseas online gaming platforms in cases of non-compliance with registration and tax payment requirements.
• Council Approval: The GST Council approved these amendments in July and August, clarifying the 28% tax rate for such supplies.
• Legislative Updates: Parliament passed the amendments to Central GST and Integrated GST laws to implement the Council's decision. Valuation rules were also notified on September 6.
• State GST Law Amendments: The All-India Gaming Federation (AIGF) has expressed concern about states that have not yet amended their State GST laws, creating ambiguity in GST treatment for online gaming companies registered in those states.
• Appeal for Suspension: AIGF urged the Centre to suspend the notifications until all states pass their respective amendments and provide necessary clarifications for industry clarity.
• Compliance and Data Storage: Tax experts emphasized the importance of compliance with the new GST regulations, including the need for online gaming companies to create data repositories for GST compliance data.