According to a report, India is the 5th largest market in the world in terms of online gaming… In the year 2016, the online gaming market in India was $543 million.
Inflation hit casinos and online gaming
If you are fond of playing casino and online games then there is no good news for you. Online gaming is now going to be heavy on the pocket. Actually the government can increase the GST rate on online gaming, casino and horse racing. The Goods and Services Tax (GST) Council may meet in the second or third week of September.
Let us tell you that the meeting of the Group of Ministers held in July this year was inconclusive. The meeting discussed raising taxes on casinos, online gaming and horse racing, but no decision was taken. In the meeting held in June, it was proposed to levy tax at the rate of 28 per cent. Talking about the present time, GST is being levied at the rate of 18 percent on casinos, online gaming and horse racing.
28 percent GST may be imposed
In the meeting of the GoM constituted on the proposal to impose GST on casinos and online gaming, it has been decided to finalize this report by August 10. The GoM, in its interim report, had said that online gaming, casino and horse racing are activities falling under the category of betting and gambling. In such a situation, GST should be levied on them at the rate of 28 percent.
The Group of Ministers, headed by Meghalaya Chief Minister Conrad Sangma, had said in its recommendation that the entire amount of online gaming should be taxed. This also includes the entry fee paid for playing the game. The GST rate on online gaming can be increased in the Goods and Services Tax (GST) Council meeting to be held in September. When this happens, casinos, online gaming and horse racing will become expensive.
India ranks fifth in the world in online gaming
According to a report by EY, India is the 5th largest market in the world in terms of online gaming. In terms of rack fees, it is estimated to be worth $ 2 billion by the year 2023. The charge that online gaming operators charge is called rack fee. This commission or gross gaming revenue is taxed at 18 per cent. This tax is in line with the tax structure applicable in many countries. The range of which is between 15 to 20 percent…
Increased GST income
Talking about GST, in July this year, the gross GST collection has increased by 28 percent on an annual basis. The government had received a total revenue of 1 lakh 48 thousand 995 crores from GST in July. This is the second largest revenue since the implementation of GST. Earlier in April this year, revenue of 1 lakh 67 thousand 540 crores came from GST. This is the highest revenue ever. Talking about June this year, the GST collection was Rs 1 lakh 44 thousand 616 crore. Since March this year, the GST collection has remained more than 1.40 lakh crores.
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