50th GST Council Meeting - Impact on online gaming companies

The Goods and Services Tax Council (‘GST Council’) in its 50^th meeting held on 11 July 2023 has announced its decision to levy 28 per cent tax on full face value for online gaming, casinos and horse racing. With respect to online gaming, the GST Council has recommended that the GST legislation be amended, particularly Entry 6 of Schedule III of the CGST Act, 2017 which currently treats ‘actionable claims, other than lottery, betting and gambling’ neither as supply of goods nor a supply of service. It has been proposed to now include online gaming and horse racing as taxable actionable claims along with lottery, betting and gambling. The rates shall be notified post amendment in the GST legislation.

Given the aforesaid, Lakshmikumaran & Sridharan Attorneys is pleased to host a Webinar to address the following issues:

• Impact of GST Council decision on online gaming companies
• Tax treatment for games of chance in casinos and online games of skill
• Timeframe for implementation of recommendation
• Nexus with the supply and contractual arrangements
• Effect of amendment - Prospective or Retrospective
• Impact on past period, current investigations with reference to decision of Hon’ble High Court of Karnataka

Speaker

L. Badri Narayanan, Executive Partner, LKS