CGST and IGST Amendment Bill introduced in Lok Sabha

Finance Minister Nirmala Sitharaman has introduced bills to amend the Central and Integrated GST laws to impose a 28% tax on the entire face value of bets placed in online gambling, casinos, and horse race clubs.

Ms. Sitharaman proposed the Central Goods and Services Tax (Amendment) Bill, 2023, and the Integrated Goods and Services Tax (Amendment) Bill, 2023, in the Lok Sabha amid opposition protests over the suspension of Congress leader Adhir Ranjan Chowdhury from the House.

The monsoon session of Parliament concludes on Friday. Following the passage of adjustments to the CGST and IGST statutes, states will see identical changes to their state GST laws approved by their respective legislatures.

The changes involve the inclusion of a provision in Schedule III of the CGST Act, 2017, to clarify the taxation of supplies in casinos, horse racing, and online gaming.

The IGST Act has been amended to include a clause imposing GST responsibility for online money games supplied by offshore firms. Such organisations will be needed to register for GST in India.

The rules would also allow for the banning of access to offshore online gambling platforms if registration and tax payment requirements are not met.

Last week, the GST Council approved changes to the Central GST (CGST) and Integrated GST (IGST) laws.

The council allowed a 28% GST on full face value of entry-level bets in online gaming, casinos, and horse racing.