The 51st GST Council meeting is scheduled for this Wednesday, 2nd August 2023, within a month of the 50th GST Council meeting on 11th July 2023. This time, the meeting will be through video conferencing. The announcement was made on its official social media handle by the GST Council.
The meeting was called to discuss a single-point agenda clarifying the GST charge on online gaming, last recommended at 28% GST. The decision taken at the last meeting received flak from the online gaming industry for charging the highest rate on the full face value of the transaction and not the commission.
A clear definition will be available at Wednesday’s 51st GST Council meeting. It will likely offer games on the internet or any electronic network, including online money gaming. It would include both games of skill and chance.
Accordingly, actionable claims will also be defined. Online money gaming will also be defined at this upcoming GST Council meeting. It could be defined as games involving players who pay or deposit money or money’s worth, including virtual digital assets, with the expectation of winning money.
The term’ virtual digital asset’ will likely take the definition from the income tax law, and such reference will be given in the GST law. The Council may propose the inclusion of a new provision in the GST law to charge Integrated GST on the supply of online money gaming services from outside India or overseas apps or platforms.
With increased claims by apps to woo players of their platforms or apps not charging taxes, the government, along with MeitY, plans to launch a crackdown on such gaming apps.
For any clarifications/feedback on the topic, please contact the writer at email@example.com
Annapoorna, popularly known as Anna, is an aspiring Chartered Accountant with a flair for GST. She spends most of her day Singing hymns to the tune of jee-es-tee! Well, not most of her day, just now and then.