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Home  » Business » 28% GST on online gaming spiked revenue by 412%: Sitharaman

28% GST on online gaming spiked revenue by 412%: Sitharaman

Source: PTI
September 09, 2024 23:55 IST
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Finance Minister Nirmala Sitharaman on Monday said that GST collection from online gaming has increased 412 per cent in six months from October 1, 2023, when 28 per cent tax was levied on these services.

Nirmala Sitharaman

Photograph: Srikant Singh/ANI

Briefing media on the decisions taken at the 54th meeting of the GST Council, Sitharaman said the status on revenue collection from casinos, online gaming and horse races after six months of implementation of 28 per cent GST was presented to the Council.

"The revenue from online gaming has increased by 412 per cent and reached Rs 6,909 crore in just for six months.

 

"This amount of Rs 6,909 crore is earned in a period of six months from Rs 1,349 crore before the notification issued on the online gaming," she said.

From October 1, 2023, entry-level bets placed on online gaming platforms and casinos were subject to 28 per cent GST.

Prior to that, many online gaming companies were not paying 28 per cent GST arguing that there were differential tax rates for games of skill and games of chance.

The GST Council in its meeting in August 2023 had clarified that online gaming platforms were required to pay 28 per cent tax and subsequently Central GST law was amended to make the taxation provision clear.

Offshore gaming platforms were also mandated to register with GST authorities and pay taxes, failing which the government would block those sites.

The Council had then decided that the taxation on online gaming sector would be reviewed after six months of its implementation.

Similarly for casinos, she said the revenue increased by 30 per cent from Rs 164.6 crore in the six months prior to the decision to Rs 214 crore in six months after the decision.

She further said that the Group of Ministers (GoM) on the real estate also submitted its status report.

The GST Council recommended to exempt supply of research and development services by a government entity or a research association, university, college or other institution using government or private grants.

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