Mode: Video Conference

Summary of Points Finalised in the Meeting

1. Ratification of Notifications and Circulars

The Council ratified all notifications and circulars issued between the 50th and 51st meetings based on the recommendations of the GST Council and decisions of the GST Implementation Committee (GIC).

This included eight Central Tax Notifications (No. 27/2023 to 34/2023 dated 31.07.2023) and one Integrated Tax Notification (No. 01/2023 dated 31.07.2023).
Decision Finalised: Ratification approved unanimously.

2. Amendments Related to Casinos, Online Gaming, and Horse Racing

The Council discussed and finalised the legislative amendments to implement the decisions taken in the 50th GST Council Meeting, mainly regarding the levy of 28% GST on full face value for casinos, online gaming, and horse racing.

Key final decisions:

Amendments in CGST Act, 2017 and IGST Act, 2017:

Insertion of definitions for “specified actionable claim,” “online gaming,” and “online money gaming.”

Amendment to Schedule III to exclude “specified actionable claims” to bring casinos, horse racing, and online gaming under GST.

Insertion of new provisions to tax cross-border supplies of online money gaming from suppliers located outside India (new Section 14A in IGST Act).

Amendments in CGST Rules, 2017:

Insertion of Rule 31B and Rule 31C prescribing valuation methods for taxable supplies in online gaming and casinos.

Clarifications added:

Tax payable on the total amount paid or payable by or on behalf of the player.

Winnings used for further play not treated as fresh payment.

Refunds to players for unused amounts not deductible from taxable value.

Notification Changes:

Amendment to Notification No. 66/2017–Central Tax dated 15.11.2017 to exclude suppliers of specified actionable claims from exemption of tax payment on advance receipts.

Enables tax payment at the time of receipt of consideration.

Clarificatory Provisions:

Provision to be added in the law clarifying that these amendments do not legalize online gaming or betting activities banned in any State (e.g., Tamil Nadu, Kerala).

Implementation Timeline:

States and Centre to align amendments within two months for implementation from 1st October 2023.

Future Review:

The Council agreed to review the impact after six months of implementation, based on revenue data and stakeholder feedback.

Decision Finalised:

Approved amendments to CGST Act, IGST Act, CGST Rules, and related notifications with minor modifications.

Clarificatory provision to be added in consultation with Tamil Nadu.

NIPFP to assist Bihar in assessing its GST revenue potential.

Summary of Key Dissent Notes

Goa and Sikkim: Opposed 28% on full face value, requested tax based on Gross Gaming Revenue (GGR).

Delhi and Punjab: Expressed concerns over adverse impact on startups and online gaming sector; requested re-evaluation.

Tamil Nadu and Kerala: Requested clarification that GST imposition does not legalize banned activities in their States.

Overall Outcome:
The 51st GST Council Meeting primarily focused on finalising the amendments for taxation of casinos, online gaming, and horse racing at 28% on full face value and approving necessary changes in laws and notifications to operationalize this decision from 1st October 2023.