51st GST Council Meeting Highlights: Key Takeaways and Updates

51st GST Council Meeting Highlights

The 51st GST Council Meeting 2023 was held virtually via video conferencing on 2nd August 2023. The meeting was chaired by Union Finance Minister, Smt. Nirmala Sitharaman. The 51st GST Council Meeting introduced changes to the taxation of online gaming and casinos. Here we are going to talk about the 51st GST Council Meeting Highlights, the 51st GST Council Meeting press release, and the 51st GST Council Meeting notification pdf.

Proposal Regarding Insertion of Provision to Tax Supplier of Online Money Gaming Outside India.

The Council has proposed to tax actionable claims supplied in Casinos, Online gaming, and horse racing at 28% on full value, a proposal to insert a special provision has been given so as to require such suppliers to take a single registration in India through a simplified registration scheme.

Introduction of Simplified Registration Scheme

The 51st GST Council Meeting has proposed to insert a special provision that requires the supplier of online money gaming located outside India to take a single registration in India through a simplified registration scheme and such supply shall be taxable under the IGST Act, 2017.

Recommendation Regarding Taxation of Supplies in Casino, Online Gaming, and Horse Racing

The GST Council has issued recommendations regarding the taxation of Supplies in Casinos, Online Gaming, and Horse Racing at 28% on full value, irrespective of whether the activities are related to a game of skill or chance, however, notifications will be issued to provide further clarification on this matter.

Proposal Regarding Valuation of Supply of Online Money Gaming by Supplier Outside India.

The GST will be applicable on the amount paid or payable to or deposited with the supplier, by or on behalf of the player (excluding the amount entered into games/ bets out of winnings of previous games/ bets). Amendment to the CGST rules 2017 has been proposed by the GST council to insert specific provisions for the valuation of the supply of online gaming and the supply of actionable claims in casinos accordingly. 

Proposal Regarding Insertion of Provision to Block Access of Information by Suppliers of Online Gaming Services.

The 51st GST Council Meeting also proposed that, in case a supplier located outside India fails to obtain the registration under the simplified registration scheme and also fails to make the payment of GST then, any computer resource used for the supply of online money gaming shall be blocked for access by the public to any information generated, transmitted, received or hosted by any computer resource.

Conclusion 

The 51st GST Council Meeting brought significant changes to the online gaming and casino sectors in India although no GST rate changes, GST rate cuts or GST exemptions have been proposed in the meeting. The proposals in the meeting aimed at providing Measures for streamlining GST compliances to tax these sectors and Expansion of the GST taxpayers base. However, the real-world impact of the proposals brought in by the GST Council will depend upon the implementation and interpretation of these provisions by the concerned people. As detailed notifications and rules are still awaited, the stakeholders in the online gaming and casino industries will need to keep a close watch on further developments to comply with the provisions.

GST Pan | GST Calculator India | GST Number Verification | GST Return Status | HSN Code Search