Guwahati: In a major move, India is all set to implement a 28 per cent Goods and Service Tax (GST) on online gaming from October 1, 2023.
The announcement was made by Central Bord of Indirect Taxes and Customs chairperson Sanjay Agarwal on Thursday.
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The announcement comes nearly two months after the Lok Sabha had passed amendments to two GST laws with a voice vote.
The amendments are related to the insertion of provision in the third schedule of CGST Act, 2017 to provide clarity on the taxation of supplies in the casinos, horse racing and online gaming.
“We are ready to implement a 28 per cent GST rate on online gaming from October 1 with the consent of all the states.
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The law for GST rate on online gaming will have to be passed by the assembly of states. Show cause notices to some online gaming companies are legal process”, Agarwal told ANI.
Moreover, the amendment in the IGST Act relates 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.