The GST Council, responsible for implementing the Goods and Services Tax (GST) in India, has upheld the 28% tax on online gaming, casinos and horse racing.
A key aspect of the council’s decision is the valuation of supply for online gaming and casinos. It has been recommended that this valuation be based on the amount paid to the supplier by the player.
This amount should exclude any sums entered into games or bets from previous winnings. This specific guideline is aimed at providing clarity on determining the taxable value and ensuring consistency in the taxation process for these sectors.
To enable the effective implementation of this decision, the council proposed amendments to the CGST Act, 2017, and IGST Act, 2017. A distinct provision will be inserted into the IGST Act, 2017, to address the liability to pay GST on the supply of online money gaming from foreign suppliers to individuals within India.