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GST Council meeting will discuss taxation of online gaming companies, these issues are also included in the agenda – AnyTV News

by Aaryan Srivastav
September 2, 2024
GST Council meeting will discuss taxation of online gaming companies, these issues are also included in the agenda - India TV Hindi

Photo:FILE online gaming

The 54th meeting of the GST Council will be held on September 9. In this meeting, the matter of taxation on online gaming can be discussed. Apart from this, the progress of the ongoing campaign against fake goods and services tax registration is also expected to be considered. Sources gave this information. The council will also approve notifications to make the amendments in the GST law effective. The council headed by the Union Finance Minister includes the finance ministers of the states. It will also discuss the reports of two Groups of Ministers (GOM). One of these is related to rationalizing the rates and the other to real estate.

Officers will present ‘status report’

The central and state tax authorities will submit a ‘status report’ to the GST Council regarding online gaming. The report will include details of GST revenue collection from the online gaming sector before and after October 1, 2023. Online gaming platforms and casinos have been charged 28 per cent GST on entry-level bets from October 1, 2023. Earlier, many online gaming companies were not paying 28 per cent GST arguing that the tax rates were different for skill-based and luck-based games.

A review was said to be done after six months

The GST Council had clarified in its meeting in August 2023 that online gaming platforms will have to pay 28 per cent tax. Later, the Central GST law was amended to clarify the taxation provision. Foreign gaming platforms were also made mandatory to register with the GST authorities and pay taxes. If they do not do so, the government will block such sites. The Council had then decided that taxation on the online gaming sector would be reviewed six months after its implementation. Sources said the Council will deliberate on the status of taxation on the sector and no change in tax rates is likely.

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