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Overseas gamers too will have to pay 28% GST on domestic e-gaming platforms

Domestic online gaming companies will be required to deduct 28 per cent GST on bets placed from overseas locations, including by foreign players, as such bets will also be treated as actionable claims. The amendment to this effect has been approved by Parliament in the Integrated GST (IGST) Act on Friday. The GST Council had last week cleared changes in Central GST (IGST) and IGST laws to levy 28 per cent tax on full face value of bets in online gaming, casinos, and horse race clubs. The amendment in IGST Act gives powers to the Government to notify such goods, so that in case of import of such goods IGST can be levied and collected as regular inter-State supply under provisions of IGST Act. Tax experts said this amendment is aimed at plugging the loophole with regard to the collection of IGST from bets coming from overseas locations. Currently, in case of import of intangible goods such as actionable claims involved in or by way of online money gaming, which do not physically cro

LS passes amendments to GST bills to levy 28% tax on bets in online gaming

Lok Sabha on Friday approved amendments to the Central and Integrated GST laws to levy 28 per cent tax on the full face value of bets in online gaming, casinos and horse race clubs. Finance Minister Nirmala Sitharaman introduced bills in the House on Friday, the last day of monsoon session of Parliament, amid opposition protests over suspension of Congress leader Adhir Ranjan Chowdhury. The Central Goods and Services Tax (Amendment) Bill, 2023, and The Integrated Goods and Services Tax (Amendment) Bill, 2023, were passed by the Lok Sabha by a voice vote, without a debate. States will now get the amendments passed in the state GST laws in their respective assemblies. The amendments pertain to insertion of a provision in the Schedule III of the CGST Act, 2017, to provide clarity on the taxation of supplies in casinos, horse racing and online gaming. The amendment in IGST Act relates to inserting a provision to impose GST liability on online money gaming provided by offshore entitie

Govt should propose tax rate cut on fertilisers to GST Council: Parl panel

A Parliamentary panel has recommended that the government should propose to the GST Council to reduce tax rates on fertilisers from the current 5 per cent. In its report laid in Parliament on Wednesday, Standing Committee on Chemicals and Fertilizers said the committee have been informed that fertilisers were placed under the 12 per cent GST bracket. However, on demand of various states, GST on fertilisers was reduced to 5 per cent. "The issue to further reduce GST on fertilisers was placed before the GST council in its 45th and 47th meetings held in September 2021 and June 2022, respectively. The GST council, however, did not recommend any change in the rates of fertilisers or other organic farm inputs. "The committee strongly recommend that the issue to further reduce GST on fertilisers may be placed before the GST Council at the earliest in the best interest of the farmers of our country," it added. The panel noted that fertilisers are levied GST at 5 per cent and its raw ...

Cabinet clears changes to laws to levy 28% GST on online gaming, casinos

The Union Cabinet on Wednesday approved changes to GST laws to levy a 28 per cent tax on the full face value of bets in online gaming, casinos and horse race clubs, sources said. The amendments to the Central GST (CGST) and Integrated GST (IGST) acts, which were approved by the GST Council last week, are likely to be introduced in the ongoing monsoon session of Parliament, which will end on August 11. The GST Council in its 51st meeting on August 2 recommended amendments to the Schedule III of the CGST Act, 2017, to provide clarity on the taxation of supplies in casinos, horse racing and online gaming. The Council also recommended inserting a provision in the IGST Act, 2017, to impose GST liability on online money gaming provided by offshore entities. Such entities would be required to get GST registration in India. The amendments will also provide for blocking access to online gaming platforms located overseas in case of failure to comply with registration and tax payment ...

ICICI Lombard gets Rs 273 crore tax-demand notice from DG GST Intelligence

ICICI Lombard General Insurance has received a Rs 273.44 crore-tax demand notice from the Directorate General of GST Intelligence with regard to settled motor insurance claims. According to a regulatory filing, ICICI Lombard, on August 8, received a show cause notice, dated July 26, alleging a tax demand of Rs 273,44,50,284 under the GST Act along with interest and penalty. "The matter largely relates to an industry-wide issue on applicability of GST on salvage adjusted and ineligible input tax credit, on motor claims settled. The company has deposited Rs 104,13,18,970 under protest, without accepting any liability in this regard," it said. Further, ICICI Lombard said the company would be filing its response to the show cause notice. Shares of ICICI Lombard General Insurance closed 1.70 per cent lower at Rs 1,391.60 apiece on the BSE on Wednesday.

28% GST on casinos, online gaming, racing to up revenue collection: FM

Finance minister Nirmala Sitharaman on Tuesday said the 28 per cent GST on full face value of supplies in casinos, race courses and online gaming will result in higher revenues. The online gaming segment grew by 28 per cent in 2021 to reach USD 1.9 billion, as per NITI Aayog estimates referred in the Draft National Policy for Growth of Animation, Visual Effects, Gaming, Comic & Extended Reality sector in India prepared by the Information and Broadcasting Ministry. In a written reply to a question in the Rajya Sabha, Sitharaman said casinos are currently paying 28 per cent GST on Gross Gaming Revenue (GGR). Online gaming industry supplying actionable claims and some horse race clubs are currently paying GST at the rate of 18 per cent on platform fees/commission ranging from 5 to 20 per cent of the full face value, while some horse race clubs are paying 28 per cent on the full face value. Sitharaman said online gaming companies supplying actionable claims and some horse race clubs ..

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28% GST on online gaming may not impact taxation on e-sports, video games

Rules in the works for demarcation between the two forms of online gaming

Punjab's GST collection rises 16.5%, excise revenue up 21% in FY24

Punjab finance minister Harpal Singh Cheema on Monday said the state has registered an increase of 16.5 per cent and 20.87 per cent in revenue from Goods and Services Tax (GST) and excise, respectively during the first four months of the financial year 2023-24. The state's GST collection stood at Rs 6,810.76 crore, and the mop-up from excise was Rs 3,033.78 crore during the April-July period of the current fiscal. Besides, it collected Rs 2,348.55 crore from Value Added Tax (VAT), Rs 76.91 crore from CST (central sales tax) and Rs 52.71 crore from Punjab State Development Tax (PSDT) during the first four months of this financial year, Cheema said in a statement issued here. He said the total revenue of Rs 11,037.17 crore was collected from these sources till the end of July 2022. In the corresponding period of the previous fiscal, the state had received a revenue of Rs 5,846.31 crore from GST, Rs 2,772.08 crore from excise, Rs 2,286.32 crore from VAT, Rs 80.84 crore from CST and Rs

14,277 GST appeals pending against disputed tax demands by authorities

As many as 14,227 appeals against disputed tax demands raised by Central GST authorities are pending as of June 2023, Parliament was informed on Monday. Minister of State for Finance Pankaj Chaudhary said the 49th meeting of the GST Council had approved the setting up of GST Appellate Tribunals across the country. "It has been planned to establish the State benches in a phased manner based on the request of states," the Minister said in a written reply in the Lok Sabha. He also gave details of the number of GST appeals against demands by Central GST authorities pending at various levels. During 2023-24 (up to June 2023), 14,227 appeals were pending. The number was gone up from 11,899 pending appeals as of March 2023. Setting up of GST Appellate Tribunal benches in states would help in faster dispute resolution. Currently, taxpayers aggrieved with the ruling of tax authorities are required to move the respective High Courts. The resolution process takes longer time as High Courts a

TMS Ep492: Laptop import curb, Data Protection Bill, markets, GST in gaming

How will be laptop import curbs affect India? What are the gaps in the Data Protection Bill? Is the Street too euphoric on laptop import curbs? How will 28% GST in online gaming work? Answers here

Weekend Bites: Import licences, taxing games, and the Ambani way

In which we munch over the week's platter of news and views

TMS Ep491: GST on gaming, AI & Indian IT, Fitch's US downgrade and more

Has the online gaming industry got a new lease on life? Is Indian IT embracing AI? How soon can equities recover from Fitch's US downgrade blow? What is Minerals Security Partnership? Answers here

28% GST on online gaming, casinos, horse racing: What it means for players

The GST Council has stuck to its earlier decision to impose a 28% levy on the full face value of bets placed on online gaming, casinos and horse racing, but kept the door open for a review

2 GST tribunal benches will come up in Bengal: WB Finance Minister

Two GST tribunal benches will come up in West Bengal this year, Minister of State for Finance (Independent charge) Chandrima Bhattacharya told the Assembly on Thursday. The two benches, part of the central Appellate Tribunal, will address the issues of aggrieved parties, she said. "Two GST tribunal benches will come up in our state and will be functional from October 1. It will facilitate faster resolution of GST-related issues," she said. Bhattacharya, also the MoS for Health, Family Welfare, Land and Land Reforms, told reporters that the benches will function in a phased manner. "We had requested for two benches at the 50th GST Council meeting and the Centre agreed to it," she said. Bhattacharya, who moved the West Bengal Goods and Services Tax (Amendment) Bill, 2023, said it will help the MSME sector to grow. The minister also voiced her concern on the rise in online gaming addiction among children and youth and said Bengal had decided to go ahead with the Centre's move to levy

Small firms in online money gaming will be unable to survive high GST: AIGF

Small companies that are into online real money-based gaming will not be able to survive due to the high Goods and Services Tax of 28 per cent, industry body All India Gaming Federation said on Wednesday. Finance Minister Nirmala Sitharaman has announced that a 28 per cent GST on the full face value of bets placed on online games will be implemented from October 1. "We believe the decision by the GST Council of valuation on deposits will severely impact the online gaming sector and result in a situation where a majority of players, including the MSMEs will no longer be able to survive in the face of the increased tax liability of 400 per cent," AIGF said in a statement. The industry body said that only established and well entrenched skill gaming companies may be able to scrape through this change by using their existing capital reserves to counter the effects of substantially increased tax liability. "However, even their revenues and valuations will significantly fall. Additionall

Delhi finance minister 'strongly opposed' to 28% GST levy on online gaming

Delhi finance minister Atishi has "strongly opposed" the GST Council's decision to implement a 28 per cent GST on online gaming platforms, an official statement said on Wednesday. The GST Council chaired by Union finance minister Nirmala Sitharaman on Wednesday decided that 28 per cent GST will be levied at face value of entry level bets placed in gaming platforms and casinos. The Centre will bring amendments to the Central GST law in the ongoing monsoon session of Parliament, following which states will pass the amendments to State GST law in their respective assemblies. According to the official statement, Atishi said that the BJP-led central government is not ready to reconsider GST rates on online gaming platforms and the 28 per cent tax rate could "restrict" the industry growth. "More than 900 startups in India are based on the online gaming industry. BJP's lack of futuristic vision will lead to the industry's destruction. The central government promotes startups but it seeks

Tweaks to GST Act must factor in law banning online gambling: TN to Centre

In the proposed amendment to the GST Act and Rules to tax online gaming, suitable modifications should be made by taking into account the state law banning online gambling, the Tamil Nadu government conveyed to the GST Council on Wednesday. In the 51st GST Council meeting, Tamil Nadu Finance Minister Thangam Thennarasu expressed strong reservations in respect of a certain clause in the proposals for amendment to GST Act and Rules in view of the TN Prohibition of Online Gambling and Regulation of Online Games Act, 2022 (banning online Rummy and Poker). The GST meet, chaired by Union Finance Minister Nirmala Sitharaman was held through video conferencing today. The agenda of meeting included draft proposals to amend the GST Act and Rules for levy of GST on online gaming, casino and horse racing. Thennarasu underscored the ban on online gambling (online wagering or betting), playing any online games of chance for money or other stakes, which are punishable offences in Tamil ...

28% GST on online gaming stays, to be reviewed after 6 months of roll-out

The decision to impose a 28 per cent tax on the full face value of bets placed on online games will be implemented from October 1 even though there was demand for a review from states like Delhi and Goa, finance minister Nirmala Sitharaman said on Wednesday. The GST Council -- the highest decision making body of the new indirect tax regime that comprises Union finance minister and representatives of all states -- discussed the language of amendments that will be needed to enabling taxing online gaming, she said after the panel meeting. The panel had at its last meeting decided to levy a 28 per cent GST on full face value of bets placed and Wednesday's meeting was to deliberate on the tax law changes that would be required to implement it. Sitharaman said Delhi finance minister opposed the levy of the tax on online gaming while Goa and Sikkim wanted the levy on GGR (gross gaming revenue) and not on face value. Sitharaman, however, said other states ranging from Karnataka to Gujarat,

GST Council meeting: Delhi FM Atishi to raise issue of tax on online gaming

Ahead of the GST Council meeting, Delhi Finance Minister Atishi on Wednesday sought reconsideration of the decision to levy 28 per cent tax on online gaming. The GST Council, in its meeting on Wednesday, is likely to finalise the modalities for determination of supply value in online gaming and casinos for levying 28 per cent tax. The minister, who met representatives from the online gaming industry on Tuesday, said the issue will be raised by her at the meeting. "Last month the @GST_Council decided to impose a 28% tax on Online Gaming. Many entrepreneurs and investors from the start-up ecosystem opposed this decision, as they felt that it would destroy this fast growing industry.Yesterday, I met several representatives from the Online Gaming industry to understand their concerns. "Today the @GST_Council is meeting again, and I will ask the Council to reconsider its decision. Promoting start-ups and entrepreneurship is the only way our economy is going to grow!" Atishi tweeted. Th