Revenue from online gaming increased by 412% in six months
The GST Council on Monday reviewed the GST rates for online gaming and casinos, and race courses. However, no decision was taken to alter the rates.
Post the GST Council meet, in a press conference, Finance Minister Nirmala Sitharaman announced that the Centre has seen a 412 per cent jump in revenue in last six months from the increased levy on online gaming, according to a status report submitted to the fitment committee.
“Revenue from online gaming has increased 412 per cent reaching Rs 6,909 crore in six months while revenues of casinos have “jumped by 30 per cent”, the finance minister added.
Online games, including skill-based and chance-based, were placed in the 28 per cent GST slab in the 50th GST meeting in July 2023. It came into effect from October 1, 2023. Earlier, skill based games were taxed at 18 percent.
From October 1, 2023, entry-level bets placed on online gaming platforms and casinos were subject to 28 per cent GST and the council had then decided that the taxation on the online gaming sector would be reviewed after six months of its implementation.
Prior to that many online gaming companies were not paying 28 per cent GST, arguing that there were differential tax rates for games of skill and games of chance. The GST Council in its meeting in August 2023 had clarified that online gaming platforms were required to pay 28 per cent tax and subsequently, Central GST law was amended to make the taxation provision clear.
