Page 22 - Online Gaming

GST Council meeting: Delhi FM Atishi to raise issue of tax on online gaming

Ahead of the GST Council meeting, Delhi Finance Minister Atishi on Wednesday sought reconsideration of the decision to levy 28 per cent tax on online gaming. The GST Council, in its meeting on Wednesday, is likely to finalise the modalities for determination of supply value in online gaming and casinos for levying 28 per cent tax. The minister, who met representatives from the online gaming industry on Tuesday, said the issue will be raised by her at the meeting. "Last month the @GST_Council decided to impose a 28% tax on Online Gaming. Many entrepreneurs and investors from the start-up ecosystem opposed this decision, as they felt that it would destroy this fast growing industry.Yesterday, I met several representatives from the Online Gaming industry to understand their concerns. "Today the @GST_Council is meeting again, and I will ask the Council to reconsider its decision. Promoting start-ups and entrepreneurship is the only way our economy is going to grow!" Atishi tweeted. Th

Govt stands firm on its decision to levy 28% GST on e-gaming, casinos

The government officials clarified that so long as money is involved in a game, govt will make no distinction between a game of skill and a game of chance

Online gaming content, advertising under purview of IB Min: Notification

Online gaming content and advertising have been brought under the purview of the Ministry of Information and Broadcasting, according to a government notification issued on Monday. In an amendment to the Government of India (Allocation of Business) Rules, the subjects Films and Audio-Visual programmes/content made available by online content providers/publishers and online advertisements have been allocated to the Information and Broadcasting Ministry. "This will lead to coverage of online gaming content and online advertising. This covers all online advertising. We can amend the Information Technology Rules now," an official said.

Game developers ask Centre for clear distinction from real money games

Since Union Finance Minister Nirmala Sitharaman announced the plan for the tax on July 11, the online gaming industry has asked the government to review the decision

GST Council to finalise taxing rules on online gaming on August 2

Legislative amendment expected in ongoing monsoon session of Parliament

Tax council to meet on Aug 2 to finalise online gaming tax: Report

Since the first announced its plan for the tax on Jul 11, the gaming industry and its investors have asked it to review the decision, which will increase the tax burden on both companies and consumers

28% online gaming GST: Indian e-sports industry to emerge unscathed

Since e-sports has now been officially recognized by the government and does not involve wagering or betting of any kind, the new GST would not be applicable to the industry, say e-sports experts

Maharashtra man wins Rs 5 crore, then loses Rs 58 crore in online gambling

A Maharashtra businessman lost Rs 58 crore in an online fraud. Police filed the complaint and started an investigation and seized Rs 14 crore cash along with four kg of gold biscuits from the accused

Is 28% GST applicable on video games, esports? Here's what ESFI says

28% GST: According to ESFI, Esports has been officially recognised as a 'sport' by the government which distinguishes it from any and all activities like iGaming like fantasy, teen patti, and rummy

28% GST to lead to write-off of $2.5 bn investment in e-gaming: Investors

The GST Council's decision to levy a 28 per cent tax on real money online gaming industry will lead to an impairment of USD 2.5 billion of investment made in the segment, a group of 30 Indian and foreign Investors said in a joint letter to Prime Minister Narendra Modi. In a letter dated July 21, leading Investors Including Peak XV Capital, Tiger Global, DST Global, Bennett, Coleman & Company Limited, Alpha Wave Global, Chrys Capital, Lumikai etc have sought the Prime Minister's intervention in the decision of GST Council which is expected to hit prospective investment to the tune of USD 4 billion in the next 3-4 years. "The current GST proposal will set up the most onerous tax regime for the gaming sector globally, which will lead to a potential write-off of the USD 2.5 billion capital invested in this sector," the letter said. Investors said the GST Council's decision has caused shock and dismay and will substantially and meaningfully erode investor confidence in the backing of ..

Kalaari to Tiger Global: Investors urge govt to reconsider 28% gaming tax

They said that the decision will have a 'deleterious impact' on the industry and is expected to result in the loss of over 50,000 high-skilled jobs in India

Tiger Global, other investors ask India to reconsider online gaming tax

Over 100 gaming firms wrote a letter to the finance ministry last week, with a similar request, saying the tax will stifle foreign investment and put $2.5 billion already invested in sector at risk

Will go back to GST Council to reconsider tax on online gaming: MoS IT

The GST Council on July 11 decided to impose 28 per cent tax on full face value of bets in online gaming, casinos and horse trading

TMS Ep477: Urban planning, online gaming, markets, gross gaming revenue

Where did India's urban planning go wrong? Is online gaming headed for another shock? Has a Dalal Street priced in demand woes for IT stocks? What is gross gaming revenue? All answers here

Indian online gaming firms relocating to avoid tax will be risky: Official

Indian online gaming firms planning to relocate overseas to avoid a new 28% tax on the sector run the risk of violating the country's forex laws, Johri, head of the indirect taxes' department, said

Delhi HC seeks Centre's stand on PIL against online gaming rules

The Delhi High Court on Thursday sought the Centre's stand on a PIL challenging the constitutional and legislative validity of the Information Technology Amendment Rules, 2023 related to online gaming. A bench of Chief Justice Satish Chandra Sharma and Justice Sanjeev Narula asked the central government to file its response to the petition by NGO Social Organisation for Creating Humanity (SOCH), and listed the matter for hearing on September 21. Additional Solicitor General Chetan Sharma said the PIL was not a public interest litigation but a "proxy personalised" litigation. The petitioner, represented by senior advocate Ritin Rai and lawyer Akshat Gupta, argued state government and not Centre was the competent authority to regulate online gaming. The lawyers said the activity has to be regulated by an independent entity. ASG Sharma questioned if an NGO can challenge the competence of the Centre to legislate by filing a PIL. "We will file (Centre's stand). We will place the materi

Clarificatory amendment to GST Act on online gaming in monsoon session

Revenue Secretary Sanjay Malhotra on Thursday said the central government will bring clarificatory amendments to the GST Act in the monsoon session of Parliament to implement GST Council's decision of imposing 28 per cent tax on online gaming, casino and horse racing. The monsoon session will begin on July 20 and end on August 11, 2023. "It will be our effort to draft the law and introduce it in Parliament and get it passed in the monsoon session," he told PTI in an interview. The implementation takes effect only when state legislatures have also passed amendments in state GST laws, he said, adding, that it will take some time. "This is a clarificatory amendment. It has been our view that online games for stakes depend on outcomes...whether game of skill or game of chance. The Council has only reiterated and confirmed that view that these games are taxable at 28 per cent on the full face value or the payment which is made to the online gaming platform," he said. So in that sense i

28% GST on online gaming to yield Rs 20,000 cr annually: Revenue Secretary

The exchequer would get an estimated additional revenue of Rs 20,000 crore annually following the decision of the GST Council to levy 28 per cent tax on full bet value on online gaming, said Revenue Secretary Sanjay Malhotra on Thursday. The GST Council has unanimously decided to impose 28 per cent tax on online gaming, casino and horse racing etc, he said adding that the government will pursue all cases in the Supreme Court for recovery of erstwhile tax demands. He said the online gaming industry is currently paying only 2-3 per cent GST which is even less than 5 per cent tax applicable on food items consumed by a common man. "One of the members, in fact, in the GST Council pointed out that the way the online gaming companies are paying the taxes on online games at 18 per cent of GGR, which works out to only about 2-3 per cent, even lower than the tax rate of 5 per cent levied on many of the food products consumed by the very common people," Malhotra told PTI in an interview. The

Explained: Will 28% GST kill real-money online gaming industry in India?

Up until now, only online gambling and betting have attracted such a steep tax

TMS Ep475: Online gaming, Triumph-Harley vs Enfield, markets, tax havens

Can online gaming survive the GST sucker punch? Can Triumph and Harley take on Royal Enfield? What should investors do in case they missed the market rally? What are tax havens? All answers here