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Date: August 2, 2023
Subject: GST Council Finalises Tax Framework for Online Gaming, Casinos, and Horse Racing
Description:

The 51st meeting of the GST Council, held virtually under the chairpersonship of Union Finance Minister Smt. Nirmala Sitharaman, focused primarily on providing legal clarity and finalising the GST framework for online gaming, casinos, and horse racing. Building on the decisions taken in its 50th meeting, the Council recommended amendments to the CGST Act and IGST Act, including changes to Schedule III of the CGST Act, to clearly bring actionable claims in casinos, horse racing, and online gaming within the GST net at a uniform rate of 28 percent on the full face value. To address cross-border digital transactions, the Council also recommended insertion of a specific provision in the IGST Act to make offshore suppliers of online money gaming liable to pay GST on supplies made to persons in India, along with a simplified single-registration mechanism and enforcement measures such as blocking access in cases of non-compliance. The valuation methodology was clarified to ensure that GST is levied on the amount paid or payable to the supplier by or on behalf of the player, excluding winnings re-used for further betting or gaming. The Council further recommended necessary amendments to the CGST Rules and issuance of related notifications to operationalise these changes, with an emphasis on completing the legislative process within two months. Overall, the decisions aim to bring uniformity, certainty, and effective tax administration to the rapidly growing online gaming and betting ecosystem.

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