Since then, the government has started charging 28 percent GST on online gaming. Since then, there has been a huge increase in the country’s exchequer. If we talk about numbers, after the decision was taken, there has been an increase of Rs 6,900 crore in the country’s exchequer in the last six months. This means that during this period, due to the imposition of GST on online gaming, the government’s earnings have increased by more than 400 percent. We will also tell you what kind of information the country’s Finance Minister has given in this regard.
412 percent increase in profits
The country’s Finance Minister Nirmala Sitharaman on Monday said that after imposing 28 per cent GST on online gaming companies, revenue collections have increased by 412 per cent in six months. 28 per cent GST has been imposed on online gaming from October 1, 2023. Regarding the decisions taken in the 54th GST Council meeting, Sitharaman said that after six months of implementation of 28 per cent GST, the status report regarding revenue collection from casinos, online gaming and horse racing has been submitted to the Council. She said that in just six months, revenue from online gaming has increased by 412 per cent to Rs 6,909 crore. Before the notification on online gaming was issued, it was Rs 1,349 crore.
These decisions were made
28 per cent GST will be imposed on entry-level bets placed on online gaming platforms and casinos from October 1, 2023. Earlier, many online gaming companies did not pay 28 per cent GST. Their argument was that the tax rates were different for games of skill and games of luck. The GST Council clarified in its meeting in August 2023 that online gaming platforms will have to pay 28 per cent tax.
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Subsequently, the central GST law was amended to clarify the tax provision. It was also made mandatory for foreign gaming platforms to register with the GST authorities and pay tax. If they fail to do so, the government will block that site. The Council then decided that the taxation of the online gaming sector would be reviewed six months after its implementation.
I won a lot just with casinos
She said similarly in the case of casinos, after the decision was taken, the revenue increased by 30 per cent to Rs 214 crore in six months. Before the decision, it was Rs 164.6 crore. Sitharaman said the Group of Ministers (GoM) on real estate has also submitted its status report. The GST Council has recommended exempting supplies of research and development services by a government entity, research unit, university, college or other institutions using government or private grants.
