Tag: GST

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

The Telangana Gaming (Amendment) Act, 2017, has actively taken measures to prohibit online gaming including games entailing a serious impact on the financial status and well-being of the people with provisions for punishment, including imprisonment and fines. Additionally, the Government of Telangana has signed a MOU with tech firms, such as Google, to enhance digital literacy and protect citizens from online risks.

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.

GST Council’s meeting today: What’s at stake for online gaming industry

Structural shifts toward a higher propensity to pay for in-game features and the burgeoning popularity of casual and midcore games are poised to play pivotal roles in shaping the landscape by FY28. (Representative Image via Unsplash)

The gaming industry is hopeful that the government will consider their concerns and arrive at a fair and sustainable decision for the valuation of GST on online gaming platforms.