Bhoomika Singh
A group of ministers (GoM) decided in a meeting held on September 5, 2022, to consider that online gaming, casinos, and horse racing, all three games are different in format hence, be levied with different Goods and Services Tax (GST) on a different valuation mechanism if required. GoM to further seek legal opinion on the applicable rate and valuation base that will be considered for levying GST on all three formats.
The chief minister of Meghalaya, Conrad Sangma chaired the meeting and later broke the news through Twitter, as his tweet reads, “After taking the opinion of stakeholders & after successive meetings to seek the suggestions of all members, we will take legal opinion before submitting the final report.”
Reacting to the outcomes of the meeting, the CEO of All India Gaming Federation, Roland Landers said, ” As per the media reports, It seems that the GoM has opined that all three sectors – online gaming, horse racing and casinos are different in nature. GoM recognising the constitutional and legal differences and nuances of online games is very promising. As AIGF, the apex industry body for online gaming, we are very hopeful that the GoM will arrive at a progressive and constitutionally sound recommendation for rate and valuation for our industry, Said Roland Landers, CEO, All India Gaming Federation.
Earlier, the 47th GST Council had decided to defer its decision on imposing a 28 per cent GST on online gaming, casinos, and the lottery by nearly two more weeks.
The online gaming industry in India is a sunshine sector and is currently estimated at 930 million USD with an annual CAGR of 22 per cent making the industry the second-largest online gaming market. As per the EY-FICCI report, online gaming will continue to grow and reach 500 million gamers by 2025 to become the fourth largest segment of the Indian M&E sector.
Also Read: The GST conundrum: A super hard level for the Indian online gaming sector
As per the EY-FICCI report, online gaming will continue to grow and reach 500 million gamers by 2025 to become the fourth largest segment of the Indian M&E sector.
