Daily News Analysis » Online Gaming: 28 percent GST

Online Gaming: 28 percent GST

The Goods and Services Tax (GST) Council, in its 50th meeting recently, decided to levy a uniform 28 percent tax on full face value for online gaming, casinos, and horse racing.

Before

After

  • Suppose Earlier GST was 18 %
  • Deposited Rs 100 for some Games 10% (Rs 10) taken as platform fees.
  • 18 % of 10 given to the government i.e. Rs 1.8
  • Under the new tax structure: 28 % on face value i.e. Rs 100
  • Now  Rs 28 will be given to the government

 

About Gaming in India:

  • An online game is defined as  “games offered on the internet and accessible through a computer or intermediary.
  • Games in India are categorized as Games of Chance (Roulette)  or Games of Skill (Rummy).

Concerns about online games in India: 

  • Can be addictive, distracting, and consume a significant amount of time.
  • Internet connectivity can sometimes expose the players’ personal details and lead to theft or cyberbullying.
  • There are games that are violent in nature, which can make kids violent. 
  • Health concerns include obesity, poor posture, eye problems, etc. 
  • Kids develop antisocial attitudes as a result of spending time alone.  
  • Online games can cause various mental health issues like anxiety, depression, and a preference for isolation. 

Regulations in India:

  • The Ministry of Electronics and Information Technology proposed an amendment to bring online gaming under IT Rules.
  • Online games must register with a self-regulatory body for legal operation in India.
  • Mandatory know-your-customer norms for verification; no betting on game outcomes is allowed in India.

Why in News:

  • The Goods and Services Tax (GST) Council, in its 50th meeting recently, decided to levy a uniform 28 percent tax on full face value for online gaming, casinos, and horse racing.