Quick Summary
Several top law firms representing the gaming industry, have written to the Prime Ministers Office (PMO) urging the GST Council to maintain the current taxation regime for the online gaming industry. At present, online skill gaming operators pay GST at the rate of 18 percent on the platform or a service fee deducted from the total entry fee paid by players. The GST Council is considering increasing this rate to 28 percent calculated over the total amount of money paid by players. In respon
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FAQ :
Currently, online skill gaming operators pay GST at a rate of 18 percent on the platform's service fee or a commission deducted from the total entry fee paid by players.
The GST Council is considering increasing the GST rate to 28 percent, calculated on the total amount of money paid by players.
The law firms argue that a 28 percent GST on the total entry fee would treat skill-based games the same as games of chance, which conflicts with previous court rulings and the constitutional principle of equality.
Yes, several courts, including the Supreme Court of India, have ruled that skill-based games should not be treated the same way as lottery, betting, or gambling.
The law firms reference Rule 31A of the CGST Rules, 2018, which applies a 28 percent GST rate to lottery, betting, and gambling, and argue that skill games should not fall under this provision.
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