• Notification Date: 24-11-2022
• Notification No: N/A

Online Gaming to attract 28% GST

At present online gaming attracts 18 percent GST. The tax charged is upon the gross gaming revenue, according to the fees charged by the online gaming portals. It is anticipated that the panel of state finance ministers is likely to recommend a uniform GST rate of 28 percent on online gaming. The rate will be irrespective of whether it is a game of skill or a game of chance. A revised formula shall be suggested based on which the amount on which the Goods and Services Tax (GST) would be levied. 

According to the sources, the GoM report is almost final and would be submitted to the GST Council and then the Council would consider whether to apply it or not.  

The Group of Ministers (GoM) which was chaired by Meghalaya Chief Minister Conrad Sangma, had appealed to the Council in June for a 28 percent GST to be applied to online gaming in its report earlier. But the Council had asked the GoM to reconsider the report. Hence, the GoM took the views of the Attorney General. It also met stakeholders from the online gaming industry. And finally, it decided to tax both the games of skill and chance as demerit goods attracting a 28 percent GST. 

In June, the GoM report suggested that GST should be levied on the entire amount received as consideration from the participant.  

The number of online gaming users has raised exponentially during the pandemic. As per reports, the online gaming sector would grow to Rs 29,000 crore by 2024-25 from Rs 13,600 crore in 2021.