The Indian government has announced its decision to impose a 28 per cent GST on online games. The move was finalized during the 50th GST Council meeting. It has drawn both praise and criticism from various stakeholders.
28% GST On Online Gaming
The Goods and Services Tax Council has agreed to levy 28 per cent GST on online gaming, horse racing, casinos on full value. The implications of this move are likely to be far-reaching and will undoubtedly impact the gaming industry as a whole.
The GST Council agreed that there should be no distinction between game of skill and game of chance. One of the key concerns raised by industry experts is the potential damage this move could cause to the sector.
In addition, it is predicted that the number of gamers will reach a staggering 450 million by 2023, making it one of the largest gaming markets in the world. The Federation of Indian Fantasy Sports (FIFS) has expressed disappointment and concern over the decision. The self-governing body argues that this tax will not only lead to a loss of revenue for the government but also push users towards illegal betting platforms that do not pay taxes.
