India implements 28% GST on online gaming starting October 1 | Fusion - WeRIndia

India is set to impose a 28% Goods and Services Tax (GST) rate on online gaming, effective October 1, as announced by the Central Board of Indirect Taxes and Customs (CBIC).

This move comes with unanimous agreement from all states and follows recent amendments to GST laws in the Lok Sabha.

Key Points:

• CBIC will implement a 28% GST rate on online gaming starting October 1.
• Amendments to GST laws related to this change were passed by the Lok Sabha in its final session of the monsoon season on August 11.
• The amendments primarily target online gaming, casinos, and horse racing.
• The decision aligns with the outcome of the 51st meeting of the Goods and Services Tax (GST) Council held on August 2, where it was resolved to expedite amendments necessary for taxing online gaming, casinos, and horse racing.
• These legislative changes provide clarity on the taxation of supplies in these sectors, with specific provisions in the IGST Act, 2017, addressing the liability to pay GST for online gaming services provided by foreign suppliers to Indian customers.
• The amendments also include measures to block access to related information in cases of non-compliance.
• Valuation of online gaming and actionable claims in casinos will be based on the amount paid or payable to the supplier, excluding previous winnings, ensuring consistency in taxation.
• The GST Council had previously recommended a 28% GST rate for Casinos, Horse Racing, and Online Gaming in its 50th meeting on July 11, regardless of whether these activities involve skill or chance.
• These amendments aim to establish a uniform taxation framework for these sectors, eliminating ambiguity.

India’s move to tax online gaming at a 28% rate is part of broader efforts to regulate and tax digital services.

With unanimous support from the states and recent legislative amendments, this change seeks to provide clear guidelines for taxation and compliance in the rapidly growing online gaming industry.

Image by Shim from Pixahive (Free for commercial use / CC0 Public Domain)

Image Reference: https://pixahive.com/photo/online-gaming-playing-in-a-mobile/