The Union Cabinet on Wednesday approved changes to GST laws to levy a 28 per cent tax on the full face value of bets in online gaming, casinos and horse race clubs, sources said.

The amendments to the Central GST (CGST) and Integrated GST (IGST) acts, which were approved by the GST Council last week, are likely to be introduced in the ongoing monsoon session of Parliament, which will end on August 11.

In its 51st meeting on August 2, the GST Council recommended amendments to Schedule III of the CGST Act, 2017, to clarify the taxation of supplies in casinos, horse racing and online gaming.

The Council also recommended inserting a provision in the IGST Act, 2017, to impose GST liability on online money gaming provided by offshore entities. Such entities would be required to get GST registration in India.

The amendments will also provide for blocking access to online gaming platforms located overseas in case of failure to comply with registration and tax payment provisions.

The amended provisions in the GST laws -- which would specifically define online gaming, online money gaming, virtual digital assets used to pay for online games and suppliers in case of online gaming -- will be effective from October 1.