Revolutionary GST Changes Unleash 28% Tax on Casino Thrills and Online Gaming: Are You Ready?

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Revolutionary GST Changes Unleash 28% Tax on Casino Thrills and Online Gaming: Are You Ready?

On Friday, the Parliament approved amendments to both the Central GST and Integrated GST laws, enabling a 28 percent levy on the total value of bets placed in casinos, horse racing, and online gaming.

The Central Goods and Services Tax (Amendment) Bill, 2023, and the Integrated Goods and Services Tax (Amendment) Bill, 2023, were successfully passed by the Lok Sabha and later received approval from the Rajya Sabha.

The next step involves states incorporating these amendments into their respective state GST laws through their Legislative Assemblies.

These amendments primarily focus on inserting a provision into Schedule III of the CGST Act, 2017, aimed at clarifying the taxation of supplies related to casinos, horse racing, and online gaming.

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The modification in the IGST Act introduces a provision to impose GST liability on offshore entities engaged in online monetary gaming. Such entities will be required to register for GST within India.

Additionally, the amendments outline the possibility of blocking access to overseas online gaming platforms if they fail to comply with registration and tax payment requirements.

Following clearance from the Union cabinet earlier in the week, these two bills have successfully passed through Parliament. Consequently, the implementation of a 28 percent GST levy on online gaming, horse racing, and casino gambling is scheduled to take effect from October 1 onwards.

During its meeting on August 2, the GST council officially set October 1 as the commencement date for the 28 percent GST on these specific activities. The council also mentioned the potential for adjustments in the tax structure after six months if the need arises.

On the final day of the monsoon session, Finance Minister Nirmala Sitharaman introduced the two bills in the Lok Sabha. The bills were swiftly passed without discussion through a voice vote, as opposition members were absent following their protest against the suspension of Congress leader Adhir Ranjan Chowdhury.

Before leaving, Congress leaders were observed in the House premises, holding placards with messages like ‘Save Democracy,’ and chanting slogans like ‘Nirav Modi Come to the House’ and ‘Manipur mein Nirav Hai’ (There is silence on Manipur). Gaurav Gogoi, a Congress leader, stated that the opposition’s withdrawal was in response to the perceived violation of the House’s prestige and honor due to the suspension of opposition members. (Source: IANS)

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