The GST Council, chaired by Finance Minister Nirmala Sitharaman, has submitted status reports on several pending matters, from the Group of Ministers (GoM), including rate rationalisation, real estate and online gaming.
The Finance Minister also announced the formation of a committee of secretaries to address the issue of the negative balance in IGST (Integrated goods and services tax). This committee will be led by an additional secretary in the revenue department. The committee will include officials from both state and central governments.
Jump in GST Collection from Online Gaming
In the last six months, the online gaming revenue has surged by 412 per cent to Rs 6,909 crore, whereas the revenue from casinos has grown by 30 per cent, FM Sitharaman said during the meeting.
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As of now, online games (both skill-based and chance-based) are taxed at a 28 per cent GST rate. This is up from the earlier 18 per cent. The new tax rate took effect last year October. Meanwhile, winnings from gaming tournaments are taxed at 30 per cent.
The ask for a reduction in tax rates levied on online gaming has long been present in the industry. Several companies like Gameskraft and Delta Corp have been served tax notices worth significant amounts.
Last month, PM said in his Independence day speech that, “I am seeing a big market that has come up in the field of gaming, but even today, the gaming world has a big foreign impact in terms of producing the games and earning revenues. India has a big heritage in the area and we can bring lots of new talent to the world of gaming,” PM Narendra Modi said in his Independence day speech last month.
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"I want Indian youth, IT professionals, AI experts to lead the gaming world, not just by playing but by creating gaming product," he further added.
