GST Collections from Real-Money Gaming Soar 412% to ₹6,909 Cr in 6 Months Under New Tax Rates, Says FM Sitharaman
📅 By Admin | September 10, 2024
📂 Categories: GST Recent News
⏳ 4 Min Read
India’s GST collections from the real-money gaming industry surged by 412% to ₹6,909 crore between October 2023 and March 2024. This dramatic increase followed the introduction of a new 28% tax rate. In the previous six months, the industry collected ₹1,349 crore. Finance Minister Nirmala Sitharaman shared these figures at the 54th GST Council meeting.
The real-money gaming sector has seen substantial growth, driven by the volume of transactions involving real money. The industry, which earned $3.1 billion in FY23, has become a major contributor to GST revenue. The GST Council’s decision in August 2023 to impose a 28% tax on the full face value of player deposits marked a significant policy shift. Before this change, the tax rate applied only to platform fees, or Gross Gaming Revenue, at 18%.
The new tax regime has significantly impacted the sector, leading to layoffs and the closure of several companies. Despite these challenges, the revenue boost highlights the growing importance of real-money gaming in India’s economy.
During the GST Council meeting, Sitharaman confirmed that the current tax rates would remain in effect. Although the Council reviewed the new tax system, they opted not to make any changes at this time. The Supreme Court is still addressing retrospective tax notices issued to gaming companies. There were no new developments on this front during the meeting.
This increase in GST collections reflects broader trends in the real-money gaming industry and underscores the sector’s growing role in the Indian economy. The decision to tax player deposits at the full face value aims to align the tax regime with the sector’s evolving financial landscape.
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