- The 28% GST on online gaming is unlikely to be rolled back despite industry concerns.
- The government sees tax collections from online gaming as stable and growing.
- Past GST notices may be reviewed, with the Supreme Court hearing pending.
The online gaming industry is unlikely to see a full rollback of the 28% Goods and Services Tax (GST) despite ongoing concerns. Government sources indicate that the tax has been largely accepted by players and tax collections are performing well.
However, there is concern within the industry about GST notices demanding past payments. Many companies have filed petitions, and the Supreme Court’s ruling on these issues is eagerly awaited. Companies argue that the money has already been paid to players, making it difficult to settle these past demands.
The GST Council will review the 28% GST on online gaming after the upcoming General Elections and the formation of the next Union government. The Council meeting is expected in late June or post the Union Budget in late July. Industry experts hope for a reconsideration of the high tax rate to support further growth in the sector.
