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High GST on Gross Gaming Revenue Blamed for Industry Slowdown The gaming industry is reeling from the recent GST Council meeting, which failed to address its plea for a revised tax structure. Industry stakeholders had proposed a 28% GST on Gross Gaming Revenue (GGR) instead of the current system
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FAQ :
The GST Council meeting did not address the gaming industry's plea for a revised tax structure, leaving the current high tax rate on gross gaming revenue in place.
The industry proposed a 28% GST on Gross Gaming Revenue (GGR) instead of the current system which taxes the full value of bets placed.
The current GST regime, implemented in October 2023, has led to major global players withdrawing investments and has significantly increased the tax burden on companies, with some startups facing tax liabilities exceeding their revenue.
Previously, GST accounted for around 15.25% of revenue. Now, for 33% of companies, GST consumes between 50% and 100% of their revenue.
Startups are particularly hard hit, often finding their tax liabilities exceed their total revenue, which forces many to operate at a loss.
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