The panel of state finance ministers is likely to recommend a uniform GST levy of 28 percent on online gaming irrespective of whether it is a game of skill or a game of chance.
Buy Prime Test Series for all Banking, SSC, Insurance & other exams
Currently, online gaming attracts 18 percent GST. The tax is levied on gross gaming revenue, which is the fees charged by online gaming portals.
The Group of Ministers report is almost final and would be submitted to the GST Council soon for consideration. However, it is likely to suggest a revised formula for calculating the amount on which the Goods and Services Tax (GST) would be levied.
The Group of Ministers (GoM), chaired by Meghalaya Chief Minister Conrad Sangma, had in its earlier report submitted to the Council in June suggested a 28 percent 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.
The message has to be clear that online gaming is a demerit good. However, some relaxation in valuation methods could be provided. Online gaming witnessed a spurt during the time of the COVID-19 induced lockdown with the number of users in India rising substantially. As per a KPMG report, the online gaming sector would grow to Rs 29,000 crore by 2024-25 from Rs 13,600 crore in 2021.
| Tax Rates | Products |
| 0.25% | Cut and semi-polished stones are included under this tax slab. |
| 5% | Household necessities such as edible oil, sugar, spices, tea, and coffee (except instant) are included. Coal, Mishti/Mithai (Indian Sweets) and Life-saving drugs are also covered under this GST slab. |
| 12% | This includes computers and processed food |
| 18% | Hair oil, toothpaste and soaps, capital goods and industrial intermediaries are covered in this slab. |
| 28% | Luxury items such as small cars, consumer durables like AC and Refrigerators, premium cars, cigarettes and aerated drinks, High-end motorcycles are included here. |
Find More News on Economy Here
In a significant development for the renewable energy sector, India has officially signed the Host…
GA Capsule for IBPS PO: Candidates appearing for the IBPS PO 2024 for the Probationary…
Oats are an important grain known for their nutrition and many uses in food. In…
South Africa’s government recently launched the Trusted Tour Operator Scheme (TTOS) as part of a…
Sultanganj railway station in Bihar’s Bhagalpur district is set to be renamed in honor of…
Chhath Puja is a special festival celebrated mainly in Bihar, Jharkhand, and Uttar Pradesh. It…