New Delhi, August 2: The GST Council in its 51st meeting held Wednesday decided it complete the process of making amendments in the relevant Acts needed for taxation on online gaming, casinos, and horse racing at the earliest and start taxing these items effective from October 1, 2023. The council today met and recommended certain amendments in the CGST Act 2017 and IGST Act 2017, to provide clarity on the taxation of supplies in casinos, horse racing and online gaming.

The Council also recommended to insert a specific provision in IGST Act, 2017 to provide for liability to pay GST on the supply of online money gaming by a supplier located outside India to a person in India, for single registration in India for the said supplier through a simplified registration scheme and also for blocking of access by the public to any information generated, transmitted, received or hosted in any computer resource used for supply of online money gaming by such supplier in case of failure to comply with provisions of registration and payment of tax. 28% GST on Online Gaming Stays; to Be Reviewed After 6 Months of Roll-out.

The Council also recommended that valuation of supply of online gaming and actionable claims in casinos may be done based on the amount paid or payable to or deposited with the supplier, by or on behalf of the player (excluding the amount entered into games/ bets out of winnings of previous games/ bets) and not on the total value of each bet placed. GST on Online Gaming: 28% Tax Likely on Online Gaming, Casinos From October 1.

Notably, the GST Council in the 50th meeting held on July 11 had recommended Casinos, Horse racing and Online gaming may be taxed at the rate of 28 per cent on full face value, irrespective of whether the activities are a game of skill or chance. The Council had also recommended that the law may be amended to provide clarity in the matter.

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