Get All Access for $5/mo

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.
News and Trends

Recur Club Announces Credit Offerings for Startups Beyond Series A and SMEs

In FY 24–25, the platform also plans to deploy an additional INR 2000 crores through its Recur Swift program for startups.

News and Trends

Stride Ventures Launches Fourth Fund with USD 300 Mn Target Corpus

Industry leaders like BlueStone, Upstox, Moneyview, Ather, Pharmeasy, Infra.Market, and Ola Electric have benefited from Stride's support.

News and Trends

Supply-Chain Financing Platform Mintifi Raises USD 180 Mn in Series E, Valuation Soars to USD 850 Mn

The raised funding will enable Mintifi to diversify its product offerings, such as dealer management systems, loans against property, and factoring services, powered by artificial intelligence.

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.

Business News

I Tried Buying a Car on Amazon. Here Are the Pros and Cons.

Amazon Autos just launched, and users can buy a new car online. Here's how it works and what needs to improve.

News and Trends

AWE Funds to Scale Women-Led ClimateTech Initiatives with CGEF Grant

The grant will empower AWE Funds to expand initiatives, invest in women-led climate companies, enhance accelerator programs, and launch a fellowship nurturing young women professionals in climate and sustainability.