CGST (Amendment) Act 2023 & IGST (Amendment) Act 2023 have been enacted by the Gazette of India on 18th Aug 2023.

Background:

GST Council in its 50th and 51st meetings considered representation from various associations on the issues regarding taxability of Casinos, Horse Racing and Online Gaming and recommended to make certain amendments in the CGST Act, 2017 to provide clarity regarding taxability of Casinos, Horse Racing and Online Gaming.

GST on specified actionable claims:

CGST (Amendment) Act, 2023 defines the expressions "online gaming", "online money gaming", "specified actionable claim" and "virtual digital asset";

The Amendment Act substituted "specified actionable claim" in paragraph 6 of Schedule III of the Act, for the present entries "lottery, betting and gambling", so as to provide clarity regarding taxability of actionable claims involved in or by way of casinos, horse racing and online gaming. The Act provides that specified actionable claims will be liable to pay GST. The Act also defines specified actionable claims as actionable claims involved in or by way of (i) betting, (ii) casinos, (iii) horse racing, (iv) lottery, (v) gambling, or (vi) online money gaming.  

The Amendment Act also defines "online money gaming" as online gaming in which players pay or deposit money or money's worth, including virtual digital assets, in the expectation of winning money or money's worth, including virtual digital assets, in any event including game, scheme, competition or any other activity or process, whether or not its outcome or performance is based on skill, chance or both and whether the same is permissible or otherwise under any other law.

"online gaming" means offering of a game on the internet or an electronic network.

Suppliers of specified actionable claims: 

NB: All the amendments have been incorporated in respective Act & Rules for our members. Members may please refer the same also.

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GST Act & Rules

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