➡️ The GST Council will clarify the rules on online gaming, casinos and horse racing on August 2, including those that use virtual digital assets (VDAs) such as cryptocurrency.

➡️ The GST Council had approved a 28% levy on these activities on July 11 on the full face value of the transactions.

➡️ The GST Council will also define "online gaming" and "online money gaming" by amendment in the CGST Act to avoid any ambiguity in the future.

➡️ Online money gaming will cover online games where players pay, deposit or receive money or money's worth, including VDAs, in the expectation of winning money or any equivalent prize or experience.

➡️ This will also apply to casinos and online casinos that transact in VDAs. ➡️ Online gaming companies that use VDAs will have to comply with the GST rules and pay the 28% tax on their transactions, which may affect their profitability and competitiveness.

➡️ Online gaming companies that do not use VDAs will also have to follow the GST definition of online gaming and online money gaming, which may expand their tax liability and reporting obligations.

➡️ This will also apply to casinos and online casinos that transact in VDAs. ➡️ Casinos and horse racing will have to pay the 28% tax on the full face value of their bets, regardless of whether they use VDAs or not, which may reduce their customer base and revenue.

➡️ Casinos and horse racing will also have to adhere to the GST definition of online gaming and online money gaming, which may increase their compliance costs and documentation requirements.