- The GST Council recommended levying a 28% GST on online gaming, casinos, and horse racing in India.
- The decision will be enforced from October 1, 2023, and will be reviewed after six months.
- Online gaming is skill-based, while online gambling is chance-based.
- Amendments were made to bring tax liability on overseas platforms offering online money gaming services to Indian consumers.
- Non-compliant offshore gaming platforms or websites will be blocked.
- The definitions of “online gaming,” “online money gaming,” “specified actionable claim,” and “virtual digital asset” in the amendment are still ambiguous.
- Tax notices have been sent to several online gaming companies, including Dream Sports and Delta Crop.
- Payments made in crypto assets for these activities will also be taxable.
- The Supreme Court is scheduled to review the Central Government’s appeal against the Karnataka High Court’s decision on GamesKraft’s GST notice.
- The government aims to maintain a win-win circumstance by potentially increasing revenue or decreasing addiction to online gaming.
Source: taxscan.in
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
