28% GST on online gaming: Finance Minister to introduce CGST, IGST Amendment Bills in Lok Sabha today

28% GST on online gaming: Finance Minister Nirmala Sitharaman will introduce the Central Goods and Services Tax (Amendment) Bill and the Integrated Goods and Services Tax (Amendment) Bill in Parliament on Friday. The Bills, cleared by the Cabinet this week, propose to levy a 28 per cent GST levy on casinos, online gaming and horse racing.

Both Bills — seeking to amend the Central Goods and Services Tax (CGST) and Integrated Goods and Services Tax (IGST) laws — will be discussed in the lower house of Parliament for consideration and passage.

Certain amendments to the CGST and IGST Acts were cleared by the GST Council last week. The GST Council — which is the highest decision-making body of the indirect tax regime — had suggested the amendments at its 51st meeting, held on August 2.

A higher levy from such businesses is likely to boost the government’s GST collections.

Currently, the online gaming industry, and some horse racing clubs pay an 18 per cent GST on platform fees and commission ranging from 5 to 20 per cent of the full face value while others pay 28 per cent on the full face value. Casinos pay a 28 per cent GST on gross gaming revenue (GGR) —the revenue that gambling companies generate from people placing bets

When will the new GST rate on casinos, online gaming and horse racing be implemented?

The amendments to the CGST and IGST laws will be implemented from October 1. The GST Council has said that a review of the amended laws will be conducted six months after implementation.

GST registration a must for foreign companies offering online gaming in India

The GST Council recommended making GST registration mandatory for foreign companies providing online gaming services in the country. 

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