Former chairperson of the Central Board of Indirect Taxes and Customs (CBIC) John Joseph has said that the Goods and Services Tax (GST) Council must differentiate between skill-based and betting-based online games before taxing them.
The GST Council is likely to meet in July to discuss the taxation of online gaming. The current law does not differentiate between skill-based and betting-based online games, and both are subject to a 28% GST.
Joseph said that it is important to distinguish between the two types of games as skill-based games are not gambling and should not be taxed as such. He said that the GST Council should consider a lower tax rate for skill-based games, such as 18%.
The online gaming industry has been growing rapidly in India, and the GST Council's decision on taxation will have a significant impact on the industry. The industry has been lobbying for a lower tax rate, and Joseph's comments are likely to give the industry some hope.
Here are some of the key points from Joseph's statement
- The GST Council must differentiate between skill-based and betting-based online games.
- Skill-based games are not gambling and should not be taxed as such.
- The GST Council should consider a lower tax rate for skill-based games, such as 18%.
- The online gaming industry is growing rapidly and the GST Council's decision on taxation will have a significant impact on the industry.
The GST Council's decision on taxation of online gaming is likely to be closely watched by the industry and the wider public. The council has a difficult task in balancing the need to raise revenue with the need to not stifle innovation and growth.
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