GST on Actionable Claims
Constitutional and Statutory Framework
Goods and Services Tax in India operates under Article 246A of the Constitution (inserted by the 101st Constitutional Amendment, 2016), which gives both Parliament and State Legislatures concurrent power to legislate on GST. The Central Goods and Services Tax (CGST) Act, 2017 defines "goods" to include actionable claims (Section 2(52)). Schedule III of the CGST Act lists activities that are treated as "supply" for GST purposes, including "lottery, betting and gambling."
- 101st Constitutional Amendment (2016): created Article 246A, Article 269A (IGST on inter-state supply), and the GST Council under Article 279A
- The 50th GST Council meeting (August 2023) recommended 28% GST on online gaming, casinos, and horse racing on full face value of bets
- CGST (Amendment) Act, 2023 (Act No. 30): inserted Section 2(102A) defining "specified actionable claims," effective October 1, 2023; the Supreme Court termed these changes clarificatory
- GST is levied on the full contest entry amount/bet value, not on the gross gaming revenue (platform commission) — a distinction worth approximately ₹1.12 lakh crore in aggregate industry liability, rising to ₹2.5 lakh crore with interest and penalties
- Mandatory GST registration: new Section 24(xia) requires foreign online gaming platforms to register if they supply to persons in India
● Tracked since May 27, 2026 · last seen May 27, 2026 · updates as the daily brief publishes
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