Online Gaming To Be Taxed At 28%

[6pack]

Source: Indian Express

Finance Minister Nirmala Sitharaman said the intent was not to end any industry linked to online gaming, casinos and horse-racing, but there was discussion on the moral question of whether these should be taxed at the same rate as essential items.

“Our agenda is not to end any industry… all types of businesses have to function… there was discussion on the moral question that on one front, you do not want to end an industry. But that does not mean that you give more incentives to them than essential goods… all states participated in this decision which has been pending for the last 2-3 years. We could take the decision today because every state clearly participated in it,” Sitharaman said.

Pointing out that the system had to be simplified as it is “impossible to pierce that veil which brings opacity on how it is actually operated”, Sitharaman said the GST Council’s decision focused on the taxation part of online gaming and it will align with the regulation of the Ministry of Electronics and Information Technology (MeitY). She said the tax on online gaming companies would be imposed without making any differentiation based on whether the games required skill or were based on chance, and that there will be an amendment in the GST law to tweak the definition of actionable claim.

“…this is purely on taxation. We will still align with what MeitY wants to bring in as their regulation…there will be an amendment to Schedule III of the GST Act and we will be bringing in online gaming into the actionable claim list where item number 6 clearly says betting, gambling and lottery are already in it. We will be including online gaming and horse racing also into it…therefore they will be taxable on full face value at 28 per cent,” she said.

For the sub-judice cases related to online gaming, Revenue Secretary Sanjay Malhotra said the government will continue to fight those cases in courts. “28 per cent tax was always the case in online gaming. Today’s decision is only to clarify it and put an end to that debate,” he said.

Online gaming companies, however, said the decision will hit the industry as it will affect gaming volumes and viability of gaming companies.

So in eyes of our Govt, online gaming = online betting and they will charge 28% tax on it. That's what i took from their "agenda". I think this government will soon start taxing clean air and water to fill their bottomless coffers.

Related news:

'We will ban 3 types of games in India': Union Minister Rajeev Chandrasekhar on online gaming

Union Minister Rajeev Chandrasekhar did not mention the parameters that will be used to classify games under any of the three categories

www.businesstoday.in

He claimed that the following types of games will be banned in India: Games that involve betting Games can be harmful to the user Games that involve a factor of addiction The minister said, "For the first time we have prepared a framework regarding online gaming, in that we will not allow 3 types of games in the country. Games that involve betting or can be harmful to the user and that involves a factor of addiction will be banned in the country." Currently, Google's Play Store and Apple's App Store are two of the dominant application stores that the new announcement will impact.

If they plan to ban these games, how will they tax it if no one plays such games?

 

[PunkX 75]

So how will this work? If I buy a game, finish the single-player campaign, and then decide to play Multiplayer, will I have to pay an additional 28% tax just to access it?

 

[wheeledion]

Afaik they will not be descriminating against skill vs chance games.

28% GST to be levied on online gaming, horse racing, casinos

GST Council has decided to impose a 28% tax rate for online gaming on full face value with no distinction between games of skill and chance, officials said on Tuesday. A 28% GST tax rate will be levied on horse racing and casinos too. Effective date for levy on online gaming will rollout after...

inshorts.com

It's very much possible that online service multiplayer games would be caught in the crossfire as betting gets worse and worse.

 

[chetansha]

real money gaming to be taxed - means rummy etc, I don't think gaming like csgo or what ever games will be taxed
But with this govt, you never know.

 

[aasimenator]

real money gaming to be taxed - means rummy etc, I don't think gaming like csgo or what ever games will be taxed
But with this govt, you never know.

well most games involve real money though right? e.g., in GTA5 you can buy fake in-game money for real money that would also come under this no?

 

[6pack]

real money gaming to be taxed - means rummy etc, I don't think gaming like csgo or what ever games will be taxed
But with this govt, you never know.

Yes, i think they are targeting the card games and other real money games business.

Related news:

'We will ban 3 types of games in India': Union Minister Rajeev Chandrasekhar on online gaming

Union Minister Rajeev Chandrasekhar did not mention the parameters that will be used to classify games under any of the three categories

www.businesstoday.in

He claimed that the following types of games will be banned in India:

Games that involve betting

Games can be harmful to the user

Games that involve a factor of addiction

The minister said, "For the first time we have prepared a framework regarding online gaming, in that we will not allow 3 types of games in the country. Games that involve betting or can be harmful to the user and that involves a factor of addiction will be banned in the country." Currently, Google's Play Store and Apple's App Store are two of the dominant application stores that the new announcement will impact.

If they plan to ban these games, how will they tax it if no one plays such games?

 

[altair21]

Yes, i think they are targeting the card games and other real money games business.

Related news:

'We will ban 3 types of games in India': Union Minister Rajeev Chandrasekhar on online gaming

Union Minister Rajeev Chandrasekhar did not mention the parameters that will be used to classify games under any of the three categories

www.businesstoday.in

If they plan to ban these games, how will they tax it if no one plays such games?

piracy go brrrrr but seriously this is bullshit if its true, why is the govt promoting digitalization so much if we are gonna regress like this

 

[6pack]

I wonder if they'll target loot boxes or such games where you buy coins. Google Play has lot of those coin games.

 

[altair21]

I wonder if they'll target loot boxes or such games where you buy coins. Google Play has lot of those coin games.

these should be targeted imo, same with ps lootboxes or gacha games like Genshin.

 

[sauravghosh]

They can't seriously mean to impose tax on games like cs go valorant cod and the likes, right? I mean even from this especial bunch that's a bit unexpected i think?

 

[desiibond]

Aren't these the things that commies do. Government decides everything for everyone, acts like God.

 

[PunkX 75]

They'll just find anything and tax it, won't they? I mean online gaming? Really?

Next, they'll tax the damn vegetables you buy at the mandi.

 

[cellar_door]

Aren't these the things that commies do. Government decides everything for everyone, acts like God.

Always hilarious when people describe fascism as communism.

Yes, i think they are targeting the card games and other real money games business.

Related news:

'We will ban 3 types of games in India': Union Minister Rajeev Chandrasekhar on online gaming

Union Minister Rajeev Chandrasekhar did not mention the parameters that will be used to classify games under any of the three categories

www.businesstoday.in

If they plan to ban these games, how will they tax it if no one plays such games?

These are such broad definitions as well. You could (not joking) ban anything from Mario to CSGO to online poker with these rules.

 

[mzsa1994]

But that does not mean that you give more incentives to them than essential goods

Like they care about essential goods

 

[altair21]

Always hilarious when people describe fascism as communism.



These are such broad definitions as well. You could (not joking) ban anything from Mario to CSGO to online poker with these rules.

heh this is the issue, the definitions are too broad

 

[Kaleen Bhaiya]

Aren't these the things that commies do. Government decides everything for everyone, acts like God.

They are commies in a way!!! Just on the far right of the spectrum. Just like how Nazis enforced what is good for the people, so are they.
I am not surprised with the actions of the Ban Janta Party. The union minister says we will ban this, that. They did the same with Pubg. It came back as bgmi.
They ought to tax anything and everything that's under the sun. Like their coffers isn't full enough with high taxation, gst and others.

 

[princeoo7]

Rummy, bimmy jada ho raha he so govt is charging it 28%. it was 30 before.

 

[BullettuPaandi]

I'm having mixed feelings about this.

Finance Minister Nirmala Sitharaman said the intent was not to end any industry linked to online gaming, casinos and horse-racing

Of course not, who'd be paying said taxes then.

But that does not mean that you give more incentives to them than essential goods

This helps not one bit. Take liquor for instance - Far more addictive, causes much more harm to consumers. To my knowledge, liquor doesn't come under GST (correct me if I'm wrong). The tax revenue generated are from things like - raw materials required to produce liquor, transportation, etc (said essential goods). Most tax revenue generated for a given state is probably through liquor industry, which only seems to be increasing - meaning the addiction & harm is still there, if not increasing with it.

With things like taxing foreign-built products, there's incentive for companies to build here to bring competitive pricing; if they fail to, local companies get time to play catch-up. Here, no one has any incentive to stop or even reduce gambling/betting. If anything, there's now an incentive to keep such industries around, worse yet help them grow.

Games can be harmful to the user

Games that involve a factor of addiction

This was the same for PUBG and all it took was - turning blood colour to green, renaming 'kills' as 'finishes' & an annoying voice message that says 'games are not real' every match. Expectations are really low on this 'framework'.


While more tax revenue generated is in theory better for everyone, they're just painting a different picture with it.
This is no solution; not even a fix; more like - benefiting from existing problems.

 

[Futureized]

GST Council has decided to go ahead with a 28% tax on full face value of online gaming. Know here how the new rule will impact the players and the companies, and by how much will their outgo increase

https://www.business-standard.com/economy/news/28-gst-on-online-gaming-how-will-new-tax-work-for-players-and-companies-123080400315_1.html

28 Percent GST On Online Gaming: Industry Cites Ambiguities Even As Clarity Emerges - Forbes India

Finance Minister Nirmala Sitharaman says the tax on online gaming, casinos and horse racing will be implemented from October 1, but it will be reviewed in six months. Players point out that valuations may take a hit and the new tax regime may compel them to rejig business models

www.forbesindia.com

Finance Minister Nirmala Sitharaman says the tax on online gaming, casinos and horse racing will be implemented from October 1, but it will be reviewed in six months. Players point out that valuations may take a hit and the new tax regime may compel them to rejig business models


Its for casino/gambling based games as far as I can understand..

 

[ibose]

Do folks never ever use the search on this forum or are just lazy -

Online Gaming To Be Taxed At 28%,

Source: Indian Express Finance Minister Nirmala Sitharaman said the intent was not to end any industry linked to online gaming, casinos and horse-racing, but there was discussion on the moral question of whether these should be taxed at the same rate as essential items. “Our agenda is not to...

techenclave.com

Mods, please merge or get rid of this.