India's Parliament passed amendments to the Central GST and Integrated GST laws to give effect to the GST Council's decision to tax online gaming, casinos and horse racing, The Hindu reported. The Finance Ministry then notified October 1 as the date the amended provisions take effect1.
- 28% GST applies to the full face value of bets1
- Offshore online gaming platforms must register in India and pay taxes under domestic law1
- A review of implementation was proposed after six months, in April 20241
Under the changes to the Central GST Act, these supplies are treated as "actionable claims" similar to lottery, betting and gambling, and are subject to 28% Goods and Services Tax on the full face value of bets1. The GST Council, made up of finance ministers of the Centre and states, approved the amendments at its meetings in July and August and clarified that such supplies would attract 28% tax on full bet value1.
The amendments to the Integrated GST Act make it mandatory for offshore online gaming platforms to take registration in India and pay taxes in accordance with domestic law1.
"The Finance Ministry has now notified that October 1 will be the appointed date for implementation of these provisions."
The GST Council decided at its August meeting that the amended provision classifying these supplies as actionable claims, and clarifying the taxation provisions, would come into effect from October 11. A review of the implementation was proposed to be carried out after six months, which is April 20241.
| Item | Detail |
|---|---|
| Tax rate | 28% GST on full face value of bets1 |
| Supplies covered | Online gaming, casinos, horse racing1 |
| Classification | Actionable claims, similar to lottery, betting and gambling1 |
| Offshore platforms | Must register in India and pay tax under domestic law1 |
| Effective date | October 11 |
| Review | Proposed after six months, April 20241 |
What it means for players
The tax is levied on the full face value of a bet, not on the platform's commission or gross gaming revenue, so the 28% applies to the entire amount wagered1. The change covers online gaming, casinos and horse racing, and treats these supplies as actionable claims in the same category as lottery, betting and gambling1. Offshore online gaming platforms must register in India and pay tax under domestic law, which affects operators based outside the country that take Indian customers1. The sources do not state how operators will pass the tax on to players, whether deposit amounts, withdrawal amounts or contest entry fees change, or what happens to balances held on platforms that do not register. Those details have not been reported.
What happens next
A review of the implementation was proposed to be carried out after six months, in April 20241. No further steps beyond that review are set out in the source.
For background on how these rules fit with the wider legal picture, see Can I Gamble in India?, What India's Online Gaming Ban Means for Players, Can I Play at Online Casinos in India?, Betting on Horse Racing in India and Gambling Laws in Asia: What Is Legal in 12 Jurisdictions.
