Online Gaming Attracts 28% Gst, Government Tells Parliament
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"Actionable claims in the form of betting and gambling including those arising from online gaming attract 28 percent GST and the GST Acts does not make the levy dependent on whether it is a game of skill or game of chance," Parliament was informed.
The Union Minitry of Finance on Tuesday said online gaming attracts 28 percent Goods and Services Tax (GST) and that there is no proposal under consideration to legalise it.
"Actionable claims in the form of betting and gambling including those arising from online gaming attract 28 percent GST and the GST Act does not make the levy dependent on whether it is a game of skill or game of chance," Parliament was informed on Tuesday.
The ministry said, in some cases, online betting and gambling sites or apps are used for money-laundering and hawala transactions. On December 16, assets amounting to Rs 212.9 crore have been identified and stand frozen under PMLA — three prosecution complaints have been filed.
Earlier, online gaming attracted 18 percent GST. The tax is levied on gross gaming revenue, which is the fees charged by online gaming portals.
Online gaming witnessed a spurt during the time of the COVID-19 lockdown, with the number of users in India rising substantially. As per a KPMG report, the online gaming sector would grow to Rs 29,000 crore by 2024-25 from Rs 13,600 crore in 2021.
Online games of skill include e-sports, fantasy games, rummy and poker or chess. Such games are either free to participate or involve real money in the form of platform fees.
