On October 7, the Goods and Services Tax (GST) Council will convene to examine the reorganization of the ministerial working group on rate rationalization and to assess the progress made by the states in implementing modifications to their GST laws regarding the taxation of online gaming. The 28% tax on wagers in online gaming, casinos, and horse racing clubs was clarified last month with changes to the Central GST and Integrated GST regulations. Companies that operate offshore e-games in India are currently required to register and adhere to GST regulations.
The restoration of the ministerial group on rate rationalization will be discussed at the October 7 meeting of the Goods and Services Tax (GST) Council. It is also anticipated that this meeting will examine the progress made by the states in implementing the recently authorized adjustments to their GST laws regarding the taxation of online gaming.
On a few specific issues, the council may also adopt an inverted duty structure. The GST Council secretariat announced on X that its 52nd meeting would take place in Vigyan Bhawan in New Delhi on October 7, 2023.
The GST Council presided over by the finance minister and made up of state counterparts, approved changes to the Central GST and Integrated GST statutes last month to provide clarification on the 28% tax on the entire face value of bets placed in online gambling, casinos, and horse racing clubs.
The changes also mandate registration for foreign e-gaming companies doing business in India.
If offshore platforms did not adhere to regulations involving GST registration and tax payment, they also included provisions for suspending access. The states were expected to make similar amendments to their individual SGST laws. While delaying the earlier deadline of October 1 for putting the modified provisions into effect, the Centre still notified the CGST Act’s modification.