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Finance Ministry Sets October 1st Deadline for Enforcing Amended GST Law Provisions on E-Gaming

New Delhi, September 30, 2023: The Finance Ministry has officially announced October 1st as the effective date for the implementation of amended Goods and Services Tax (GST) law provisions concerning the taxation of e-gaming, casinos, and horse racing. These amendments signify a crucial shift in the taxation framework for these sectors, aligning them with the classification of “actionable claims,” similar to lottery, betting, and gambling.

Under these revised provisions, e-gaming, casinos, and horse racing activities will now be subject to a 28% GST rate, calculated on the full face value of bets placed. This development marks a significant change in the taxation landscape for these industries, ensuring consistency with the overarching principles of the GST framework.

The move to categorize these activities as “actionable claims” underscores the government’s efforts to standardize and simplify the tax structure, ensuring equitable taxation practices across various sectors. By subjecting e-gaming, casinos, and horse racing to the 28% GST rate, the government aims to streamline tax collection and compliance processes while promoting transparency and uniformity in the treatment of actionable claims.