In the six months from October 1, 2023, GST collection from online gaming increased tremendously.
The passion for online gaming is so dominant on the users that they are paying 28 percent tax for these services without any hesitation. They have no qualms about it. The latest figures are testifying this. Finance Minister Nirmala Sitharaman said that there has been a tremendous increase of 412 percent in GST collection from online gaming in six months from October 1, 2023. According to PTI news, while giving information about the decisions taken in the 54th meeting of the GST Council last Monday, Sitharaman said that the status of revenue collection from casinos, online gaming and horse racing was presented to the council six months after the implementation of 28 percent GST.
GST collection is surprising
According to the news, Nirmala Sitharaman said that revenue from online gaming has increased by 412 percent and reached Rs 6,909 crore in just six months. It was Rs 1,349 crore before the notification on online gaming was issued. From October 1, 2023, entry-level bets placed on online gaming platforms and casinos will be subject to 28 percent GST. Earlier, many online gaming companies were not paying 28 percent GST, arguing that there are different tax rates for games of skill and games of chance.
This decision was taken on online gaming
In its meeting in August 2023, the GST Council had clarified that online gaming platforms will have to pay 28 per cent tax and later the Central GST law was amended to clarify the taxation provision. Offshore gaming platforms were also required to register with the GST authorities and pay tax, failing which the government would block those sites. The Council had then decided that the taxation on the online gaming sector would be reviewed six months after its implementation.
GST collection for casinos also increased rapidly
Similarly, for casinos, he said revenues grew 30 per cent from Rs 164.6 crore in the six months before the decision to Rs 214 crore in the six months after the decision, according to the report. He further said the Group of Ministers (GoM) on Real Estate also submitted its status report. The GST Council recommended exempting supply of research and development services by a government body or research association, university, college or other institution using government or private grants.
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