28% GST on online gaming, casino will increase revenue collection, know what else Finance Minister said
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Online Gaming GST Nirmala Sitharaman News : Finance Minister Nirmala Sitharaman has said that imposing 28 per cent Goods and Services Tax (GST) on the full face value of casinos, horse racing and online gaming will generate more revenue. NITI Aayog estimates that India’s gaming industry will grow by 28 percent in 2021 to $1.9 billion.
In a written reply to a question in Rajya Sabha, Sitharaman said that casinos are currently paying 28 per cent GST on Gross Gaming Revenue (GGR). Sitharaman said, it is estimated that the levy of 28 percent on full face value as recommended in the 50th GST Council meeting will increase revenue from the current level.
The online gaming industry and some horse racing clubs supplying actionable claims are currently paying GST at the rate of 18 per cent on platform fee/commission ranging from five to 20 per cent of the full face value, while some horse racing clubs Paying 28% GST on face value.
For your information, let us tell you that 28 percent tax on online gaming, casino and horse racing will remain intact. This decision was taken in the 51st GST Council meeting. Finance Minister Nirmala Sitharaman said after the meeting that the decision to impose 28 percent tax on the full face value of online gaming bets will be implemented from October 1.
Finance Minister Nirmala Sitharaman said that Delhi’s finance minister opposed taxing online gaming, while Goa and Sikkim wanted to tax GGR (gross gaming revenue) and not face value. At the same time, other states from Karnataka to Gujarat, Maharashtra and Uttar Pradesh want the decision taken in the last meeting to be implemented.
The Finance Minister said after the meeting of the GST Council that the 28 percent tax imposed on online gaming, casino and horse racing will be reviewed after 6 months of its implementation. He said that after making necessary changes in the Central and State laws, the decision of 28 percent tax will be applicable from October 1. An association of online gaming companies had earlier requested Finance Minister Nirmala Sitharaman to reduce the 28 percent Goods and Services Tax (GST). The industry body said that this tax is very high and it will encourage gaming companies to operate illegally.
Dangerous ‘game’ of online games
Online games are mostly such, which are designed to keep the user hooked on the basis of psychology. According to psychologists, the habit of these games becomes because the user has access to them. He continues his game even while getting up and sitting, eating and drinking. For your information, let us tell you that earlier the government had banned the PUBG Mobile app due to security reasons. Similarly, the Government of India had also banned Tiktok due to data security concerns. According to an estimate, the market size of online gaming in India will cross Rs 231 billion by the year 2025.
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