Page 5 - Online Gaming

GST registration to be mandatory for gaming operators based overseas

Parliament passes two money Bills to levy 28% tax on online money gaming, casinos, horse racing

Overseas gamers too will have to pay 28% GST on domestic e-gaming platforms

Domestic online gaming companies will be required to deduct 28 per cent GST on bets placed from overseas locations, including by foreign players, as such bets will also be treated as actionable claims. The amendment to this effect has been approved by Parliament in the Integrated GST (IGST) Act on Friday. The GST Council had last week cleared changes in Central GST (IGST) and IGST laws to levy 28 per cent tax on full face value of bets in online gaming, casinos, and horse race clubs. The amendment in IGST Act gives powers to the Government to notify such goods, so that in case of import of such goods IGST can be levied and collected as regular inter-State supply under provisions of IGST Act. Tax experts said this amendment is aimed at plugging the loophole with regard to the collection of IGST from bets coming from overseas locations. Currently, in case of import of intangible goods such as actionable claims involved in or by way of online money gaming, which do not physically cro

LS passes amendments to GST bills to levy 28% tax on bets in online gaming

Lok Sabha on Friday approved amendments to the Central and Integrated GST laws to levy 28 per cent tax on the full face value of bets in online gaming, casinos and horse race clubs. Finance Minister Nirmala Sitharaman introduced bills in the House on Friday, the last day of monsoon session of Parliament, amid opposition protests over suspension of Congress leader Adhir Ranjan Chowdhury. The Central Goods and Services Tax (Amendment) Bill, 2023, and The Integrated Goods and Services Tax (Amendment) Bill, 2023, were passed by the Lok Sabha by a voice vote, without a debate. States will now get the amendments passed in the state GST laws in their respective assemblies. The amendments pertain to insertion of a provision in the Schedule III of the CGST Act, 2017, to provide clarity on the taxation of supplies in casinos, horse racing and online gaming. The amendment in IGST Act relates to inserting a provision to impose GST liability on online money gaming provided by offshore entitie

Cabinet clears changes to laws to levy 28% GST on online gaming, casinos

The Union Cabinet on Wednesday approved changes to GST laws to levy a 28 per cent tax on the full face value of bets in online gaming, casinos and horse race clubs, sources said. The amendments to the Central GST (CGST) and Integrated GST (IGST) acts, which were approved by the GST Council last week, are likely to be introduced in the ongoing monsoon session of Parliament, which will end on August 11. The GST Council in its 51st meeting on August 2 recommended amendments to the Schedule III of the CGST Act, 2017, to provide clarity on the taxation of supplies in casinos, horse racing and online gaming. The Council also recommended inserting a provision in the IGST Act, 2017, to impose GST liability on online money gaming provided by offshore entities. Such entities would be required to get GST registration in India. The amendments will also provide for blocking access to online gaming platforms located overseas in case of failure to comply with registration and tax payment ...

MPL to lay off 350 employees after 28% GST imposed on online gaming

The new taxation rule increases the tax burden on MPL by as much as 350-400 per cent, Srinivas wrote in the email on Tuesday

28% GST on casinos, online gaming, racing to up revenue collection: FM

Finance minister Nirmala Sitharaman on Tuesday said the 28 per cent GST on full face value of supplies in casinos, race courses and online gaming will result in higher revenues. The online gaming segment grew by 28 per cent in 2021 to reach USD 1.9 billion, as per NITI Aayog estimates referred in the Draft National Policy for Growth of Animation, Visual Effects, Gaming, Comic & Extended Reality sector in India prepared by the Information and Broadcasting Ministry. In a written reply to a question in the Rajya Sabha, Sitharaman said casinos are currently paying 28 per cent GST on Gross Gaming Revenue (GGR). Online gaming industry supplying actionable claims and some horse race clubs are currently paying GST at the rate of 18 per cent on platform fees/commission ranging from 5 to 20 per cent of the full face value, while some horse race clubs are paying 28 per cent on the full face value. Sitharaman said online gaming companies supplying actionable claims and some horse race clubs ..

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28% GST on online gaming may not impact taxation on e-sports, video games

Rules in the works for demarcation between the two forms of online gaming

TMS Ep492: Laptop import curb, Data Protection Bill, markets, GST in gaming

How will be laptop import curbs affect India? What are the gaps in the Data Protection Bill? Is the Street too euphoric on laptop import curbs? How will 28% GST in online gaming work? Answers here

Weekend Bites: Import licences, taxing games, and the Ambani way

In which we munch over the week's platter of news and views

TMS Ep491: GST on gaming, AI & Indian IT, Fitch's US downgrade and more

Has the online gaming industry got a new lease on life? Is Indian IT embracing AI? How soon can equities recover from Fitch's US downgrade blow? What is Minerals Security Partnership? Answers here

28% GST on online gaming: How will new tax work for players and companies

GST Council has decided to go ahead with a 28% tax on full face value of online gaming. Know here how the new rule will impact the players and the companies, and by how much will their outgo increase

28% GST on online gaming, casinos, horse racing: What it means for players

The GST Council has stuck to its earlier decision to impose a 28% levy on the full face value of bets placed on online gaming, casinos and horse racing, but kept the door open for a review

GST Council meet: 28% tax on online gaming from October 1, says Sitharaman

The Council will review the implementation of 28 per cent goods and services tax (GST) on online gaming, and casinos after six months

GST Council Meeting 2023 Highlights: Here are the key points to know

The 51st GST Council meeting 2023 was held yesterday via video conferencing. The government stands its ground with its 28 per cent GST charge on casinos, race courses, and online gaming

28% GST on online gaming to be implemented from October 1: FM Sitharaman

Despite dissent from a few states, including Goa, Sikkim, and Delhi, the Council proceeded with the decision without a vote, as the majority of states were in agreement

Delhi finance minister 'strongly opposed' to 28% GST levy on online gaming

Delhi finance minister Atishi has "strongly opposed" the GST Council's decision to implement a 28 per cent GST on online gaming platforms, an official statement said on Wednesday. The GST Council chaired by Union finance minister Nirmala Sitharaman on Wednesday decided that 28 per cent GST will be levied at face value of entry level bets placed in gaming platforms and casinos. The Centre will bring amendments to the Central GST law in the ongoing monsoon session of Parliament, following which states will pass the amendments to State GST law in their respective assemblies. According to the official statement, Atishi said that the BJP-led central government is not ready to reconsider GST rates on online gaming platforms and the 28 per cent tax rate could "restrict" the industry growth. "More than 900 startups in India are based on the online gaming industry. BJP's lack of futuristic vision will lead to the industry's destruction. The central government promotes startups but it seeks

GST Council meeting: Delhi FM Atishi to raise issue of tax on online gaming

Ahead of the GST Council meeting, Delhi Finance Minister Atishi on Wednesday sought reconsideration of the decision to levy 28 per cent tax on online gaming. The GST Council, in its meeting on Wednesday, is likely to finalise the modalities for determination of supply value in online gaming and casinos for levying 28 per cent tax. The minister, who met representatives from the online gaming industry on Tuesday, said the issue will be raised by her at the meeting. "Last month the @GST_Council decided to impose a 28% tax on Online Gaming. Many entrepreneurs and investors from the start-up ecosystem opposed this decision, as they felt that it would destroy this fast growing industry.Yesterday, I met several representatives from the Online Gaming industry to understand their concerns. "Today the @GST_Council is meeting again, and I will ask the Council to reconsider its decision. Promoting start-ups and entrepreneurship is the only way our economy is going to grow!" Atishi tweeted. Th

Govt stands firm on its decision to levy 28% GST on e-gaming, casinos

The government officials clarified that so long as money is involved in a game, govt will make no distinction between a game of skill and a game of chance

Online gaming content, advertising under purview of IB Min: Notification

Online gaming content and advertising have been brought under the purview of the Ministry of Information and Broadcasting, according to a government notification issued on Monday. In an amendment to the Government of India (Allocation of Business) Rules, the subjects Films and Audio-Visual programmes/content made available by online content providers/publishers and online advertisements have been allocated to the Information and Broadcasting Ministry. "This will lead to coverage of online gaming content and online advertising. This covers all online advertising. We can amend the Information Technology Rules now," an official said.