GST New Rule: Playing online games will become expensive from October 1, Finance Ministry issued notification
GST New Rule: From October 1, GST at the rate of 28 percent will be levied on online gaming, casino, and horse racing. For this, changes have also been made to the Central GST and IGST Act. The new GST rates will be reviewed after six months i.e. on April 1, 2024. The Finance Ministry has also issued a notification regarding this.
New GST rates will be applicable on online gaming, casino, and horse racing from the first of October. After this people will have to pay more tax than before. Its notification has also been issued by the Finance Ministry.
After negotiations with state governments and all parties regarding the GST rate on online gaming, casinos, and horse racing, the government decided to impose 28 percent GST. For this, changes have also been made to the Central GST Act. After this, the supply will be considered as an actionable claim like a lottery.
Apart from this, amendments have also been made to the IGST Act. For this, it will be necessary for any outside company to register to do business in online gaming, etc. in India.
In the GST Council meeting held in July and August, the Central and State Governments jointly decided to impose 28 percent GST on online gaming, casino, and horse racing. The amendments made in this regard have also been passed by the Parliament last month itself. Only after this, the notification has been issued by the Finance Ministry. From October 1, 28 percent GST will be imposed on online gaming, casino, and horse racing.
The review of GST rates on online gaming, casino, and horse racing will take place after six months i.e. in April 2024. In this review meeting, the impact of the new rates of GST law will be seen. Gaming companies say that the new GST rates will have a negative impact on their business.