The 51st GST Council Meeting, chaired by Union Minister for Finance & Corporate Affairs Smt. Nirmala Sitharaman, was held via video conferencing in New Delhi. Let’s take a look at the key recommendations made during the meeting

  1. Background:
    • In the 50th GST Council Meeting on 11th July 2023, the Group of Ministers (GoM) presented its 2nd Report on Casinos, Race Courses, and Online Gaming.
    • The Council recommended taxing actionable claims supplied in Casinos, Horse Racing, and Online Gaming at a uniform rate of 28%, regardless of whether these activities involve a game of skill or chance.
  2. Amendments to CGST and IGST Acts:
    • The GST Council recommended specific amendments in the Central Goods and Services Tax (CGST) Act 2017 and the Integrated Goods and Services Tax (IGST) Act 2017 to provide clarity on the taxation of supplies in Casinos, Horse Racing, and Online Gaming.
    • Schedule III of the CGST Act 2017 will be amended to reflect these changes.
  3. Taxation of Online Money Gaming from Overseas Suppliers:
    • The Council recommended inserting a new provision in the IGST Act 2017. This provision will address the liability to pay GST on the supply of online money gaming by a supplier located outside India to a person in India.
    • A simplified registration scheme for single registration in India for such suppliers will be introduced.
    • In case of non-compliance with registration and tax payment, access to public information generated, transmitted, received, or hosted in any computer resource used for online money gaming supply will be blocked.
  4. Valuation of Online Gaming and Actionable Claims in Casinos:
    • The valuation of supply of online gaming and actionable claims in casinos will be based on the amount paid or payable to the supplier, excluding the amount entered into games/bets from previous winnings.
    • The total value of each bet placed will not be considered for valuation purposes.
  5. Amendments to CGST Rules 2017:
    • The Council recommended specific provisions for the valuation of supply of online gaming and actionable claims in casinos. These provisions will be inserted in the CGST Rules 2017 accordingly.
    • Notifications and amendments related to these issues will also be issued.
  6. Effective Date of Amendments:
    • The GST Council aims to expedite the process of making amendments to the Act.
    • The proposed amendments are planned to come into effect from 1st October 2023.

These recommendations aim to bring clarity and uniformity in the taxation of Casinos, Horse Racing, and Online Gaming. The proposed amendments will streamline the tax framework and enhance compliance in the respective sectors.