The government has imposed a 28 percent Goods and Services Tax (GST) on online gaming companies from October 2023.
Gaming Industry GST
In the next financial year, the government expects to collect Rs 14,000 crore in GST from online gaming companies, Revenue Secretary Sanjay Malhotra said here today. The government has imposed a 28 percent Goods and Services Tax (GST) on online gaming companies from October 2023.
The presence of online gaming companies is increasing in the country, and expressing concern about consumers getting addicted to online games, the government has increased the taxation on these companies. Therefore, this 1.5 billion dollar industry, which has a large stake of global investors, was a big shock. The industry is continuously demanding that GST should be reduced.
Malhotra also said that this industry is expected to generate around Rs 75 billion tax revenue for the government in the fiscal year ending March 31, 2023, which would be more than Rs 16 billion over the previous fiscal year. He also mentioned that tax revenue of Rs 35 billion was received in the October-December quarter.
“The industry has stabilized now, though it would be too early to make a conclusive comment,” he added. Malhotra also clarified that the tax structure on online gaming companies will be reviewed in April, but this does not mean there will be a change in the tax rate.
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