On August 11, the Parliament passed the Central Goods and Services Tax (Amendment) Bill, 2023 (CGST Amendment Bill) and the Integrated Goods and Services Tax (Amendment) Bill, 2023 (IGST Amendment Bill) for the implementation of a 28% tax on online gaming. According to Maadhyam, an active observer of parliamentary proceedings, these bills were passed in the Lok Sabha within three minutes without any discussion. Once they made their way to Rajya Sabha, Bills were returned within four minutes without any discussion, let alone any suggestion. These amendments are expected to come into effect starting October 1, 2023.
Currently, online betting and gambling are taxed at 28% GST, while other games are taxed at 18% of gross gaming revenue. But in July this year, Finance Minister Nirmala Sitharaman announced the hike in taxes for online gaming, horse racing, and casinos and brought them to par with the tax on betting and gambling. This change in the GST regime has been heavily criticized by the real money gaming industry, with organizations like the All India Gaming Federation (AGIF) saying that it would lead to job losses and may encourage people to play games on actual ‘illegal’ offshore betting platforms instead.
For a deep dive into this issue here’s some of our coverage you should check out (in the order listed below):
- Online Real Money Gaming Gets Equated With Gambling In Taxation [Read]
- 28% GST On Online Gaming: How Have The Industry, Investors, And Critics Responded? [Read]
- Online Games With Wagering On Outcomes Taxed At 28% GST, Other Online Games At 18%: Revenue Secy [Read]
- Reading Between The Lines Of The Online Skill Gaming Industry’s Letter On Concerns Over GST Hike [Read]
- May Write To Finance Standing Committee To Discuss GST Gaming Hike, Write Report: MP Amar Patnaik [Read]
- Following GST Hike On ‘Online Gaming’, Video Game Cos Write To Govt Requesting Distinction From Real Money Games. [Read]
- MPL To Lay Off 350 Employees Owing To The 28% GST Levy: Report. [Read]
STAY ON TOP OF TECH NEWS: Our daily newsletter with the top story of the day from MediaNama, delivered to your inbox before 9 AM. Click here to sign up today!
