Image Source: Agencies

According to sources, India and the online gambling industry received advertisements worth Rs 1,00,000 crore. The announcements come even as the industry has expressed concern over the current GST rates.
The government argued that according to the law, the 28 percent GST rate should be applicable from October 1. In August 2023, the GST Council amended the law to clarify that all online games where bets are placed, regardless of skill or chance, will be subject to GST of 28% of the total value of bets placed from 1 October. This clarification was intended to address potential shortcomings. Chairman of the Board of Indirect Taxes and Customs (CBIC) Sanjay Agarwal announced that India is ready to impose this 28% GST tax on online gaming after consent of all Indian states. Amendments to the GST laws in the Lok Sabha paved the way for this tax change.
In its last monsoon session, the Lok Sabha passed amendments to two Goods and Services (GST) bills. These changes were mainly aimed at imposing a 28 percent GST on online gaming, casinos and horse racing.
The changes are in line with the GST Council and the August 2 resolution that sought to harmonize taxation of online gaming, casinos and horse racing. In addition, the GST Council has recommended that special provisions be included in the Integrated Goods and Services Act (IGST) 2017 to ensure compliance. These regulations include the obligation to pay GST on online gambling provided by foreign providers to Indian customers and measures to deal with violations.
The assessment of claims against online gambling and casinos is based on the amount paid or payable to the provider, excluding past winnings, ensuring consistent and clear taxation.
India's move to tax online gaming is part of a broader push to bring various sectors under the GST framework, with the aim of eventually harmonizing tax rates and clarifying tax rates for these growing industries.