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Online Games are likely to include 28% GST tax slab

To discuss the pertinent tax slab for the online gaming industry, a GST Council is likely to chair a meeting today. The panel had earlier expressed its interest to put online gaming entities that especially provide games with stakes like rummy and poker in the 28% tax slab. At present, 18% GST is levied on players’ fees accumulated by players playing an online game.

The accumulated fee collected and retained by the service provider is known as Gross Gaming Revenue. However, the GST council has expressed interest in levying 28% GST on the gross gaming value, which is the total money deposited by users in the form of a prize pool. The Advisor to the All India Gaming Federation, Kiran Singh said, “Applying GST on GVV will lead to almost a 900% rise in taxes, which will kill the emerging gaming industry.”

It is also expected that the GST Council by the group of ministers’ decision could club skill gaming with gambling titles. It is said by Apex body that online games involving stakes like rummy do not amount to gambling or chance, but rather need skills. Putting casinos and horse racing firms in the 28% tax slab, the GST council chaired by the Union Finance Minister Nirmala Sitharaman along with state leaders will discuss the plan of action.

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