IAMAI Joins Online Gaming Industry Bodies in Warnings against Proposed GST Hike on Online Gaming
The Internet and Mobile Association of India (IAMAI) has issued an open letter urging the Central Government and the GST Council to preserve the status quo regarding Goods and Services Tax levy on online gaming. Currently, online game companies are charged 18 percent GST over their Gross Gaming Revenue (GGR). The Contest Entry Fees (CEF) are tax free. The Group of Ministers (GoM) which was formed in May last year by the Council recommended a uniform 28 percent levy for all gaming varieties. IAM AI calculates that the implementation of such a recommendation would increase effective taxation by 1,100 percent and destroy the Indian online games industry.
