look news india
New Delhi: After imposing 28 percent GST on online gaming companies, revenue collection has increased by 412 percent in six months. Finance Minister Nirmala Sitharaman said that 28 percent GST has been imposed on online gaming from October 1, 2023.
Sitharaman said that six months after the implementation of 28 per cent GST, a status report on revenue collection from casinos, online gaming and horse racing was submitted to the Council.
In just six months, the revenue from online gaming has increased by 412 percent to Rs 6,909 crore. This amount of Rs 6,909 crore has been earned in a period of six months. Before the notification on online gaming was issued, it was Rs. 1,349 crore.
Entry-level bets placed on online gaming platforms and casinos are subject to 28 per cent GST from October 1, 2023. Earlier, many online gaming companies did not pay 28% GST. They argued that there are different tax rates for games of skill and games of chance.
The GST Council in its meeting in August, 2023 clarified that online gaming platforms will have to pay 28 per cent tax. Later, the Central GST Act was amended to clarify the tax provision.
It was also made mandatory for foreign gaming platforms to register with GST authorities and pay taxes. If they do not do so, the government will block the site. The Council then decided that the tax on the online gaming sector will be reviewed six months after its implementation. He said that similarly in the case of casinos, the revenue has increased by 30 per cent to Rs 214 crore in six months after the decision was taken. Before the decision, it was Rs 164.6 crore.