Lok Sabha Passes CGST (Amendment) Bill With 28% Tax On Online Gaming, Casinos

Lok Sabha on Friday passed amendments to Central, Integrated GST laws to levy 28 pc tax on e-gaming, and casinos. Finance Minister Nirmala Sitharaman presented the bill in Lok Sabha with an aim to control money laundering allegations within the world of online gaming.

the government is set to introduce the Central Goods and Services Tax (Amendment) Bill, 2023, and the Integrated Goods and Services Tax (Amendment) Bill, 2023, for deliberation and approval in the Lok Sabha today with an aim to control money laundering allegations within the world of online gaming,

Amendments to the GST law propose to incorporate online gaming, casinos, and horse racing under the 28 percent tax bracket. This new tax framework is slated to take effect on October 1, in accordance with the decisions reached at the recent GST council meeting.

With respect to online gaming and actionable claims in casinos, the Council has proposed assessing their value based on the sum paid or deposited by players to the supplier, excluding previous winnings. This approach contrasts with taxing the total value of each bet placed.

The Council also compared the taxation rates applicable to essential items like food with the rates applied to online gaming and casinos, recognising potential disparities.

In addition to this, the Council has advised potential revisions to the law to ensure clarity in this regard. Additional amendments to the provisions of the Central Goods and Services Tax Act, 2017, and the Integrated Goods and Services Tax Act, 2017, have also been proposed.

Meanwhile, CPI MP John Brittas will move a private member resolution to take steps to amend Section 18 of the Constitution (One Hundred and First Amendment) Act, 2016, so as to provide compensation to the States for the loss of revenue arising on account of implementation of the GST for a total period of ten years.