Quick Summary
It appears that the GST Council in India is likely to hold an unscheduled meeting on August 2 to address the issue of tax treatment on real-money games played on online gaming platforms. The decision to impose a 28 percent tax on the face value of real-money games has caused concern among online gaming companies. Currently, online gaming platforms pay an 18 percent GST on the platform fees, which is based on the Gross Gaming Revenue (GGR), rather than on the full value of the transaction, kno
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FAQ :
The GST Council is scheduled to convene on August 2nd.
The proposed tax rate is 28 percent on the face value of real-money games.
Currently, online gaming platforms pay an 18 percent GST on platform fees, based on the Gross Gaming Revenue (GGR).
Companies are concerned that the 28 percent tax on the full transaction value could significantly harm the Indian online gaming startup ecosystem and deter foreign investment.
No, the upcoming meeting is not expected to reconsider the decision to impose the 28 percent tax. Instead, it will focus on providing clarity on legal amendments for tax treatment.
Tax authorities are guided by the principle of equity, treating online gaming similarly to betting or gambling, and focusing on the aspect of playing for stakes and outcomes.
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