You can be on Entrepreneur’s cover!

Panel Of Ministers Likely To Recommend 28 Per Cent GST On Online Gaming According to an EY-All India Gaming Federation Report, it is said that online gaming industry has the potential to generate $2 billion by 2023

By Teena Jose

Opinions expressed by Entrepreneur contributors are their own.

You're reading Entrepreneur India, an international franchise of Entrepreneur Media.

Pexels

The panel of state finance ministers is likely to recommend a uniform GST levy of 28 per cent on online gaming irrespective of whether it is a game of skill or game of chance, according to a PTI report. Currently, the GST levied on online gaming is 18 per cent, which is the fee charged by online gaming portals. The report stated that the group of ministers (GoM) report is almost in its final stages and would be submitted before the GST council soon for consideration.

The group of ministers, chaired by Meghalaya chief minister Conrad Sangma, had in its earlier report submitted to the Council in June suggested that a 28 per cent GST on the full value of the consideration, including contest entry fee, paid by the player, without making a distinction such as games of skill or chance. However, the Council had asked the GoM to reconsider its report.

As a follow-up, the GoM took the views of the Attorney General and also met stakeholders from the online gaming industry. As per the report, although the GoM deliberated on separate definitions for 'games of skill' and 'games of chance', it finally decided to tax both as demerit goods attracting a 28 per cent GST.

The message has to be clear that online gaming is a demerit good. However, some relaxation in valuation methods could be provided, sources told PTI.

The report also added that the GoM report in June had suggested that the GST should be levied on the entire amount received as consideration from the participant.

According to an EY-All India Gaming Federation Report, it is said that the online gaming industry has the potential to generate $2 billion by 2023 and the online real money game players are expected to grow from 80 million in 2020 to 150 million by 2023.

Teena Jose

News Desk Reporter with Entrepreneur India

Teena is a post graduate in financial journalism. She has an avid interest in content creation, digital media and fashion.
Business News

Side Hustles Are Soaring as Entrepreneurs Start Businesses Working Part- or Full-Time Elsewhere, According to a New Report

The younger the entrepreneur, the more likely they were to start a business as a side hustle.

Entrepreneurs

The Untold Story of the Visionary Behind CLAT's Rise in India

When deciding on a career path, the majority of us consider becoming an engineer, a doctor, or a chartered accountant. But there's another choice that's just as good: becoming a lawyer.

News and Trends

Landscaping Startup Garden of Joy Secures INR 84 Lakhs Led by Inflection Point Ventures

The Bengaluru-based platform intends to use the money raised to develop a design tool, grow its operations in Bengaluru and five other cities, and vertically integrate through owning workshops for fabrication and civil work.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

News and Trends

NIIF Picks up a Majority Stake in Network Solutions Provider iBus for USD 200 Mn

The Bengaluru-based iBus intends to use the fresh funds to support both organic and inorganic growth initiatives, as well as to increase its footprint in recently developed markets like IoT solutions.

News and Trends

Mumbai Metro Launches TapTap Wristband for Effortless Travel

According to Mumbai Metro One (MMOPL) authorities, the TapTap band is made of an environmentally friendly silicone-based material, which makes it non-allergenic and kind to the skin.