Lok Sabha Approves Central GST Amendment Bill by Finance Minister

The Lok Sabha has approved the central GST amendment bill. The bill sought a 28 percent tax on the total face value of bets in online gaming, casinos, and horse race clubs. The bill was presented by finance minister Nirmal Sitharaman finance minister Nirmala Sitharamsn on the final day of the monsoon session, amidst opposition protests over Congress leader Adhir Ranjan Chowdhary's suspension.   

Both, the Central Goods and Services Tax (Amendment) Bill, 2023, and The Integrated Goods and Services Tax (Amendment) Bill, 2023 were passed by a voice vote by the Lok Sabha, without a debate.

As per the recent development, a revised procedure has been established wherein individual states within the nation will have the authority to successfully navigate and secure the passage of proposed amendments within their own unique state Goods and Services Tax (GST) legislations. This crucial process will emphasize the decentralized nature of this decision-making framework.

The amendments pertain to the insertion of a provision in the Schedule III of the CGST Act, 2017, to provide clarity on the taxation of supplies in casinos, horse racing, and online gaming.

The amendment in 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.

The forthcoming amendments specifically aimed at instituting a mechanism for the purpose of imposing restrictions upon overseas online gaming platforms in the event that they fail to adhere to the prescribed mandates concerning registration protocols and the requisite fulfillment of tax payment obligations. This pivotal step underscores the government's resolute commitment to ensuring a robust regulatory framework that fosters accountability and adherence to regulatory norms within the realm of online gaming services operating beyond the nation's borders.

Last week, the GST Council approved the Central GST (CGST) amendment bill and Integrated GST (IGST) bill..    

The council had approved a levy of 28 percent GST on the full face value of entry-level bets in online gaming, casinos, and horse racing.