Page 21 - Online Gaming

FinMin notifies Oct 1 date for implementing amended GST law for e-gaming

The Finance Ministry has notified October 1 as the date for implementation of the amended GST law provisions for taxing e-gaming, casinos and horse racing. According to the changes to the Central GST Act, these supplies will henceforth be treated as "actionable claims" similar to lottery, betting and gambling and subject to 28 per cent Goods and Services Tax (GST) on full face value of bets. The amendments to Integrated GST (IGST) Act makes it mandatory for offshore online gaming platforms to take registration in India and pay taxes in accordance with domestic law. In its meetings in July and August, the GST Council, comprising finance ministers of Centre and states, had approved amendments to the law to include online gaming, casinos and horse racing as taxable actionable claims, and clarified that such supplies would attract 28 per cent tax on full bet value. Parliament last month passed amendments to the Central GST and Integrated GST laws to give effect to the Council's ...

TMS Ep530: FMCG & inflation, e-gaming, real estate stocks, Cauvery dispute

Is inflation hurting FMCG companies' pockets? Can Indian e-gaming survive the tax demand? Is it time to book profit in real estate stocks? Why has the Cauvery dispute flared up again? Answers here

Showcause to egaming companies in line with legal provisions: CBIC

E-gaming companies have been issued show cause notices for alleged GST evasion as per legal provisions, the head of Central Board of Indirect Taxes and Customs (CBIC) Sanjay Kumar Agarwal said on Thursday, adding that the tax demanded is based on analysis of data. He also said that the government is fully prepared to implement from October 1 the amended provisions for levying a 28 per cent tax on online gaming, casinos and horse racing along with mandatory registration of offshore online gaming platforms. In its meetings in July and August, the GST Council had approved amendments in law to include online gaming, casinos and horse racing as taxable actionable claims, and clarified that such supplies would attract 28 per cent Goods and Services Tax (GST) on full bet value. Parliament last month passed amendments to the Central GST and Integrated GST laws to give effect to the Council's decision. Since then, online gaming companies like Dream11 and casino operator Delta Corp have ...

Tax demand on online gaming companies likely to top Rs 1.5 trillion

Dream11 and other companies seek legal recourse after DGGI slaps GST notice

Delta Corp sinks 23% in 2 days post tax notice; Kacholia sells 0.6% equity

The stock was quoting at its lowest level since December 2020 after the company received a tax notice amounting to Rs 16,822 crore last Friday, September 22.

Tax troubles: 80 online gaming companies likely to face GST evasion notice

Evasion by companies may be to the tune of up to Rs 12,000 crore

HP launches AMD processors-powered Omen 16 and Victus 16 gaming laptops

The HP Omen 16 and Victus 16 feature OMEN Gaming Hub, which is a gaming-focused utility tool with options such as performance mode and network booster

UAE creates federal authority for commercial gaming as casinos flock nation

Casinos long have been rumoured to be considered as a way to raise money in the UAE and boost its tourism industry, particularly in Dubai, home to the long-haul airline Emirates

GST on online games remains vexed issue despite Council blunting its impact

The gaming industry opposes 28 per cent tax on fresh bets even prospectively as it will increase the burden by 400 per cent, which is neither fair nor sustainable

Centre warns media outlets of action over ads of gambling platforms

The central government on Friday warned media outlets against publishing or displaying advertisements of online betting platforms, failing which they would face legal action. In an advisory issued to newspapers, television channels, digital media, social media platforms, the Ministry of Information and Broadcasting asked them to immediately refrain from showing advertisements/promotional content of betting and gambling platforms in any form. The government would be constrained to take appropriate action under various statutes, if they fail to abide by the order, the advisory said.

Top headlines: All eyes on Chandrayaan-3 landing, 28% GST move, and more

Business Standard brings you the top headlines at this hour

28% GST move: E-gaming companies fear tax liability may rise to 400%

The law will come into force on October 1 this year and will be reviewed after six months, according to a decision by the GST Council

User spends below Rs 100 on online gaming, Rs 200-400 on OTT: Survey

An average user spends less than Rs 100 on online gaming and Rs 200-400 on over-the-top (OTT) platforms, according to a report by technology and policy think tank Esya Centre. Published in a working paper of IIM Ahmedabad, the survey outlines that users spend the maximum time about 194 minutes a day on social media, compared to 46 minutes on online gaming and 44 minutes on OTT. Also, 28 per cent of the surveyed population consider online gaming important for their employment prospects. The report assesses market forces and user behaviours across social media, OTT and online gaming, including real money gaming, e-sports and casual gaming, among 2,000 respondents from Delhi NCR, Bengaluru, Chennai, Mumbai, Kolkata, Patna, Mysuru, Lucknow, Jaipur, and Bhopal and in-app data from over 20.6 lakh users across 143 mobile applications. As per the report, "Policymakers' concerns around online gaming are unsupported by user time-spend and money-spend data." The report comes after the GST ..

Online money egaming firms face tax outgo of Rs 45,000 crore

On July 11, the GST council stated that no distinction would be made between games of chance and games of skill and that 28 per cent would be imposed on the full face value of bets

GST registration to be mandatory for gaming operators based overseas

Parliament passes two money Bills to levy 28% tax on online money gaming, casinos, horse racing

Overseas gamers too will have to pay 28% GST on domestic e-gaming platforms

Domestic online gaming companies will be required to deduct 28 per cent GST on bets placed from overseas locations, including by foreign players, as such bets will also be treated as actionable claims. The amendment to this effect has been approved by Parliament in the Integrated GST (IGST) Act on Friday. The GST Council had last week cleared changes in Central GST (IGST) and IGST laws to levy 28 per cent tax on full face value of bets in online gaming, casinos, and horse race clubs. The amendment in IGST Act gives powers to the Government to notify such goods, so that in case of import of such goods IGST can be levied and collected as regular inter-State supply under provisions of IGST Act. Tax experts said this amendment is aimed at plugging the loophole with regard to the collection of IGST from bets coming from overseas locations. Currently, in case of import of intangible goods such as actionable claims involved in or by way of online money gaming, which do not physically cro

LS passes amendments to GST bills to levy 28% tax on bets in online gaming

Lok Sabha on Friday approved amendments to the Central and Integrated GST laws to levy 28 per cent tax on the full face value of bets in online gaming, casinos and horse race clubs. Finance Minister Nirmala Sitharaman introduced bills in the House on Friday, the last day of monsoon session of Parliament, amid opposition protests over suspension of Congress leader Adhir Ranjan Chowdhury. The Central Goods and Services Tax (Amendment) Bill, 2023, and The Integrated Goods and Services Tax (Amendment) Bill, 2023, were passed by the Lok Sabha by a voice vote, without a debate. States will now get the amendments passed in the state GST laws in their respective assemblies. The amendments pertain to insertion of a provision in the Schedule III of the CGST Act, 2017, to provide clarity on the taxation of supplies in casinos, horse racing and online gaming. The amendment in IGST Act relates to inserting a provision to impose GST liability on online money gaming provided by offshore entitie

Cabinet clears changes to laws to levy 28% GST on online gaming, casinos

The Union Cabinet on Wednesday approved changes to GST laws to levy a 28 per cent tax on the full face value of bets in online gaming, casinos and horse race clubs, sources said. The amendments to the Central GST (CGST) and Integrated GST (IGST) acts, which were approved by the GST Council last week, are likely to be introduced in the ongoing monsoon session of Parliament, which will end on August 11. The GST Council in its 51st meeting on August 2 recommended amendments to the Schedule III of the CGST Act, 2017, to provide clarity on the taxation of supplies in casinos, horse racing and online gaming. The Council also recommended inserting a provision in the IGST Act, 2017, to impose GST liability on online money gaming provided by offshore entities. Such entities would be required to get GST registration in India. The amendments will also provide for blocking access to online gaming platforms located overseas in case of failure to comply with registration and tax payment ...

MPL to lay off 350 employees after 28% GST imposed on online gaming

The new taxation rule increases the tax burden on MPL by as much as 350-400 per cent, Srinivas wrote in the email on Tuesday

28% GST on casinos, online gaming, racing to up revenue collection: FM

Finance minister Nirmala Sitharaman on Tuesday said the 28 per cent GST on full face value of supplies in casinos, race courses and online gaming will result in higher revenues. The online gaming segment grew by 28 per cent in 2021 to reach USD 1.9 billion, as per NITI Aayog estimates referred in the Draft National Policy for Growth of Animation, Visual Effects, Gaming, Comic & Extended Reality sector in India prepared by the Information and Broadcasting Ministry. In a written reply to a question in the Rajya Sabha, Sitharaman said casinos are currently paying 28 per cent GST on Gross Gaming Revenue (GGR). Online gaming industry supplying actionable claims and some horse race clubs are currently paying GST at the rate of 18 per cent on platform fees/commission ranging from 5 to 20 per cent of the full face value, while some horse race clubs are paying 28 per cent on the full face value. Sitharaman said online gaming companies supplying actionable claims and some horse race clubs ..