GST on Gaming: In the GST Council meeting on December 17, 2022, a decision can be taken to increase GST on casino, race course and online gaming.
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GST Council Meeting: If you are also online gaming (online gaming) If you are fond of playing games like Rummy, Ludo, Carrom or Cricket on the platform, then very soon your pocket burden is going to increase. Because in the GST Council meeting on December 17, 2022, a decision can be taken to increase GST on casino, race course and online gaming. Although before that the online gaming industry (Online Gaming Industry) has said that it has no objection to increase in GST rate from 18 per cent to 28 per cent but this tax should not be levied on the entry amount for participating in the competition. This can have a negative impact on the $ 2.2 billion industry.
Explain that in the upcoming meeting of the GST Council, it will be considered to tax the total amount of online gaming activities at the rate of 28 percent. Gaming’s gross revenue is taxed at a rate of 18 percent. GGR is the fee that a skill-based online gaming platform charges as a service charge to its users. At the same time, Competition Entry Amount (CEA) is the fee paid to be a part of any competition on the gaming platform.
Revenue will increase by about 55 percent
Trivikram Thampi, co-CEO of Games24×7, says that as an industry, we are united that GST should be levied on gross gaming revenue as before and not on competition entry money. By increasing the rate on gross revenue to 28 percent, the tax revenue received by the government will increase by about 55 percent.
He said that the online gaming industry will bear this burden, but if GST is imposed at the rate of 28 percent on the entry amount, then the increased tax burden will have to be passed on to the consumers. This can lead to the risk of losing customers and promoting the illegal gaming market.
Government will get tremendous benefit
After the rapid increase in the reach of smartphones and internet in the country, the craze of online gaming has also increased. In such a situation, the online gaming sector is growing rapidly and during COVID, a significant increase was seen in the number of users of these games. According to a report by KPMG, the online gaming sector in India will be worth Rs 29,000 crore in 2024-25, which was just Rs 13,600 crore in 2021. That is, its market size will almost double and after increasing the tax rate, the government’s earnings will also increase tremendously.
English News Headline : GST on Online Gaming Decision can be taken in GST Council Meeting.
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