GST – storyboard18

Finance Ministry to meet RMG operators on Friday, will discuss money laundering in online gaming

Finance Minister Nirmala Sitharaman announced in September 2024 that revenue from online gaming increased by 412%, reaching Rs 6,909 crore within six months.

Stakeholders will also discuss challenges faced by the industry such as GST and penetration of offshore gambling companies in India.

ZEEL gets GST notice of Rs 16.60 million for ineligible ITC claims

The violation stated reads GST demanded towards excess ITC claimed in GSTR-3B.

ZEEL believes the case has merit and will appeal within three months under the TNGST Act. The company assured investors that the order will not materially impact its financials or operations.

RMG players’ woes increase, while Rs 8.2 trillion illegal betting market grows

Finance Ministry officials met real money gaming federations on Friday.

Beyond taxation challenges, RMG companies are urging the government to refine online gaming regulations to clearly differentiate between skill-based gaming and betting or gambling.

Indian retailers urge GST council to reject GST rate rationalization recommendation

Indian Sellers Collective has identified five immediate fall-outs which will hurt the business environment.

The sellers body believes that a new fifth GST slab of 35% and pricing-based rate structure will materially and fundamentally alter the country’s GST framework with devastating outcomes.

IMS rollout could curtail festive sales opportunity for retailers: Empower India

Indian retailer (Image: Unsplash)

The primary objective of the IMS is to streamline the input tax credit (ITC) claim process. However, according to Empower India, the lack of preparation will not only increase the compliance burden but also impede the efficient deployment of the capital

Indian beverage industry urges GST rate cut to boost sector growth

For carbonated drinks, which are taxed at 28% with an additional 12% cess, the industry has requested a reclassification.

Industry leaders call for rationalisation of GST on bottled water, fruit juices, and carbonated drinks, citing high taxes as a hurdle to growth and consumer affordability.

DGGI will shake hands with foreign govts to crack whip on offshore gambling firms

The DGGI Annual Report states that actions have been taken against 118 domestic online gaming companies, with Show Cause Notices issued to 34 taxpayers, involving tax amounts of Rs 1,10,531.91 crore.

This move will curb tax evasion in the online ‘gaming’ sector in India and will also help block websites of such notorious illegal offshore entities.

Online gaming industry faces potential 50 percent revenue drop after 6 months of 28 percent GST implementation

In addition to the basic rate of 30 percent, a health and education cess at the rate of 4 percent of the amount of tax is levied. Thus the effective tax rate on lottery winnings comes up to 31.2 percent. (Image sourced via Unsplash)

To weather the storm of a significant revenue drop in the financials for the last six months, among other cost cutting measures, online gaming companies are slashing marketing expenses by over half.

The silver lining of 28 percent GST on gaming: crackdown on offshore betting firms

The illegal offshore betting industry will continue to grow at 20% at the least, leading to a tax loss figure of Rs 6,72,205 crore by 2026.

The government has mandated these entities to officially register within the country, ensuring transparency and adherence to the higher GST levy.

GST Council decision on online gaming: Industry voices concerns and hopes for future review

The Supreme Court recently stayed the Karnataka High Court's judgment that had quashed the GST department's show-cause notice to Gameskraft in May 2023. (Representative image by Michał Parzuchowski via Unsplash)

While re-strategising business models might be an option for the larger players, for the smaller online gaming enterprises, the weight of taxation could prove to be insurmountable as per stakeholders.