The Parliament has successfully passed amendments to the GST laws, introducing a 28 percent tax on the complete value of wagers in the realm of online gaming, casinos, and horse racing clubs. On Friday, the Rajya Sabha swiftly endorsed these adjustments to the Central and Integrated GST regulations. This new tax structure applies to the entirety of bets made in the digital gaming sphere, casinos, and establishments related to horse racing.

The Rajya Sabha, without engaging in any discussions, returned the proposed legislations to the Lok Sabha through a unanimous voice vote. Prior to this, during the same day, the Lok Sabha gave its approval to two crucial monetary bills: The Central Goods and Services Tax (Amendment) Bill, 2023, and The Integrated Goods and Services Tax (Amendment) Bill, 2023. Union Finance Minister Nirmala Sitharaman effectively introduced these bills in both the Houses.

It is noteworthy that Friday marked the conclusion of the Monsoon session of Parliament. Going forward, the states will need to ratify these amendments within their respective assemblies to implement them as part of their state GST laws.

The core amendments are centered around incorporating a provision into Schedule III of the CGST Act, 2017. This inclusion seeks to bring transparency to the tax treatment of services provided by casinos, horse racing venues, and online gaming platforms.

Furthermore, a notable modification in the IGST Act involves the introduction of a clause that mandates offshore entities providing online money gaming to assume GST liability. These entities will be obligated to obtain GST registration within India. To ensure compliance with registration and tax payment requisites, the amendments will also empower the authorities to restrict access to overseas online gaming platforms.

The amendments to the Central GST (CGST) and Integrated GST (IGST) laws were granted the stamp of approval by the GST Council in the previous week. Notably, the council sanctioned the imposition of a 28 percent GST on the full value of entry-level bets in online gaming, casinos, and horse racing activities.

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