Differential Tax Treatment Between Skill and Chance-Based Games Could See Online Gaming Companies Face Hefty 28% GST Levy

Kerala, India (August 19, 2023) –It appears that the online gaming companies in India are facing a significant tax demand of Rs 45,000 crores following the implementation of a 28% Goods and Services Tax (GST) on their services. This information is based on an article from TaxScan, which is a source for tax and legal news.

The article likely discusses how the imposition of a 28% GST on the services provided by online gaming companies has led to a substantial tax liability for these companies. GST is a value-added tax that is levied on the supply of goods and services in India. The rate of GST can vary depending on the category of goods or services.

Online gaming companies, which offer various forms of online entertainment such as video games, virtual items, and other related services, would fall under the category of services subject to GST. This move by the government to levy a 28% GST on these services seems to have resulted in a significant financial obligation for these companies.

It’s important to note that tax policies and regulations can be complex and can have a significant impact on businesses. Companies affected by this tax demand may need to review their financials, consult with tax experts, and possibly engage in discussions with tax authorities to address the issue.

For the most accurate and up-to-date information, it’s recommended to refer directly to the source article from TaxScan or other reputable news sources covering the topic.

SOURCE: TaxScan.