The Gst Council May Impose 28% Tax On The Online Gaming Industry.
Online skill- grounded gaming assiduity is fine with the government raising GST on online gaming from 18 per cent to 28 per cent but it should be levied only on gross gaming profit( GGR) and not on contest entry quantum as could hit the USD2.2- billion sector, say assiduity players.
There are reports that the forthcoming GST Council may consider assessing a 28 per cent Goods and Services Tax(GST) on the total quantum rather than the current practice of 18 per cent on GGR.
Another player in the space Digital Works Pvt Ltd said the association's request for GST on gross gaming profit, rather than entry fee, is a pivotal step towards the growth and development of this daylight sector in India.
"Applying GST on entry fee would oppressively disincentive players, who formerly pay a range of levies and fees. In variance, gaming profit, which is the global norm, would ensure that all players, anyhow of their position of skill or success, are contributing to levies in an indifferent way," said Sumanta Dey, Senior Director, Public Policy and Corporate Affairs, Head Digital Works.
Online games of skill include fantasy games, and poker or chess. Similar games are either free to share or involve some form of platform fee.