Finance Minister Nirmala Sitharaman introduced the bills in the Lok Sabha on Friday, the last day of the Monsoon Session of the Parliament
Now, state assemblies will have to pass similar amendments to GST laws
Last month, the GST Council announced its decision to impose 28% GST on the amount being paid at the entry level for online gaming
The Lok Sabha on Friday approved the amendments to the Central and Integrated GST laws to levy 28% GST on full face value of bets for online gaming, casinos and horse race clubs.
Finance Minister Nirmala Sitharaman introduced the bills in the House on Friday, the last day of the Monsoon Session.
The Central Goods and Services Tax (Amendment) Bill, 2023, and The Integrated Goods and Services Tax (Amendment) Bill, 2023, were approved by the GST council last week.
Now, state assemblies will have to pass similar amendments to GST laws.
The amendments relate to insertion of a provision in Schedule III of the CGST Act, 2017, to provide clarity on taxation of supplies in casinos, horse racing and online gaming.
The amendment to the IGST Act pertains to inserting a provision to impose GST liability on online money gaming provided by offshore entities. Such entities would be required to get GST registration in India.
Last month, the GST Council announced its decision to impose a 28% GST on the amount being paid at the entry level for online gaming. Right afterwards, the union government also underlined plans to amend the GST Act during the ongoing Monsoon Session of the Parliament to implement the new levy, targeting its implementation from October 1.
Meanwhile, Mobile Premier League (MPL) emerged as the first casualty of the GST Council’s decision to levy a 28% GST as the gaming unicorn decided to slash 350 jobs to cut costs. MPL cofounder and CEO Sai Srinivas told employees that the new levy has increased the tax burden on the company by as much as 350-400%.
Another gaming startup Hike has also slashed its total workforce by 25%, or 100 employees, as the company began its mass layoff exercise on Wednesday. “Business is in best shape ever but this 400% increase in GST is a bazooka pointed at us. We’ll need to absorb some of it and as a result the RIF at Hike/Rush,” Hike founder and chief executive officer (CEO) Kavin Mittal told Inc42.
Meanwhile, the GST Council in its meeting earlier this month decided to review the decision to levy 28% GST on real-money gaming after six months.
