Some states are in the process of notifying legislative changes for the part of taxes to be collected by them. The new regime kicks in amid intense litigation around the regime that existed till today with Supreme Court last month issuing a stay order on a Karnataka HC decision, favouring an online gaming company.

The finance ministry orders seek to implement GST Council's decision to ensure that 'the chance to win' or 'actionable claims' supplied by online gaming platforms, horse racing clubs and casinos should be subject to 28% GST. Gaming companies have been resisting new tax regime saying it will make the industry unviable.

The notifications issued by the Centre cover aspects like date of implementation, the value of the taxable service, GST return form and import of gaming as a service.

The new regime makes a clear distinction between casual online games and those involving a wager. Only actionable claims offered by 'online money games' are subject to 28% tax on full value of deposits made to the platform.

Online money games are those in which the player deposits an amount in the expectation of winning some amount in a game or event. The amendments do not affect the tax on casual online gaming in which no real money or betting or wager is involved.

Experts advised that gaming platforms have to embrace the revised taxation regime. While most provisions for the revised taxability have been notified, ambiguity on some matters continues like classification of the supplies made, etc, said Abhishek Jain, Indirect Tax head & Tax partner at KPMG.

Gaming firms offering online money gaming from a place outside India to a person in India are required to be registered compulsorily from 1 October, explained Saurabh Agarwal, Tax Partner at EY. "In case any amount is returned or refunded to the player or returned due to non use of such amount, it will not be deductible from the value of supply," said Agarwal.