The amendments make a distinction between online gaming and online money gaming, brought payments received and winnings paid in virtual digital assets (VDAs) by online gaming companies and casinos under GST and makes registration mandatory for a person supplying online money gaming from overseas location.
The bills passed by both the houses lay down simplified GST registration for such overseas suppliers and empowers authorities to block websites or platforms of non-compliant suppliers. These amendments will not affect the tax on casual online gaming which doesn’t involve real money or betting or wager.
The GST Council had decided to implement the 28% tqx from October 1. States will have to amend their GST acts to facilitate the implementation. Online money gaming is defined as online gaming in which the player pays or deposits an amount in the expectation of winning some amount in a game or event. “The Government has stuck to its guns and not made a distinction between games of skill and games of chance,” Rajat Bose, Partner, Shardul Amarchand Mangaldas and Co.
