In the last meeting of the Group of Ministers (GoM), there was a consensus on the proposed tax on these activities, but there was no complete consensus of the GoM on online gaming because Goa had proposed to impose only 18 percent tax on the platform fees of online gaming. . In the 50th meeting of the GST Council, it has been announced to reduce the tax on restaurants located in Cineplex. It has reduced from 18 percent to five percent.
FICCI’s Gaming Committee, representing large online gaming firms, has requested the Central Board of Indirect Taxes and Customs (CBIC) not to increase taxes on online gaming. It says that the online gaming industry will suffer a huge loss because no business can survive with such high taxes. Finance Minister Nirmala Sitharaman, who chairs the GST Council, said that IGST has been removed on cancer medicines and food used for special purposes in the treatment of some diseases. He said, “I am happy that we have reached a decision. Some changes will be made in the GST law. There will be a tax of 28 percent on the entire value of online gaming, horse racing and casinos.”
The E-Gaming Federation has termed the decision to impose 28 percent tax on online gaming as unfortunate. It is said that this tax will cause a big blow to the industry. This will increase the number of illegal operators in this market and make it difficult for online gaming firms to remain in business. Even before this, the definition of online gaming and the tax on it were discussed in the GST Council meetings but no consensus could be reached on it. This industry is growing rapidly but it may become difficult due to increase in taxes.
Gadgets 360 for the latest tech news, smartphone reviews and exclusive offers on popular mobiles. Android Download the app and follow us Google News Follow on.
Online, Tax, Gaming, Casino, Market, GST, FICCI, Industry, Demand, Government, Value