The 51st GST Council meeting on the date August 2nd, 2023 was conducted via video conferencing in New Delhi with Union Finance Minister Nirmala Sitharaman, presiding over the meeting with Union Minister of State for Finance Pankaj Chaudary, Revenue Secretary Sanjay Malhotra, and several state ministers.
The gaming industry is quite disappointed with the GST Council’s decision. The cases of Probo Media and Gameskraft regarding GST rates are still in hearing in the High Court. The Karnataka High Court recently dismissed Gameskraft’s GST claim of Rs. 21,000. The Central Government, on the other hand, expects to take the matter to the Supreme Court.
51st GST Council Meeting Updates
Key points included are-
- GST of 28% on online gaming, casinos, and horse racing remains unchanged.
- CGST and SGST Act changes relating to online gaming taxes
- After its six-month implementation term for online gambling, the council will examine the GST implementation.
- The precise definition of actionable claims is approved
- The approval includes “online gaming” in the definition to include “online money gaming”
- Approval of the concept of online money Games includes those that combine skill and chance.
- Approves the phrase “offered on the internet or e-network, including online money gaming” to describe online gaming.
- Approving the addition of the IT Act’s concept of “virtual digital asset” to the GST legislation.
- The inclusion of online money gambling services provided by organizations outside of taxable areas under the IGST scope has been approved by the council.
- Approval of the plan to restrict all online gaming applications and platforms that don’t adhere to tax regulations.
- If provisions are not followed, offshore gaming firms are subject to action under the IT Act and must register.
- Council to distinguish Online gaming and online money gaming
- If necessary, notifications will be given on the “Place of supply.”
