28 percent GST on online gaming will fetch Rs 20,000 crore annually


New Delhi: Revenue Secretary Sanjay Malhotra has said that the Goods and Services Tax (GST) Council’s decision to tax online gaming at the rate of 28 per cent will fetch the exchequer an estimated additional revenue of Rs 20,000 crore annually. The GST Council on Tuesday unanimously decided to tax online gaming companies, casinos and horse races at the rate of 28 per cent. Malhotra said on Thursday that the government would pursue all cases in the Supreme Court for recovery of past tax demands.

The Revenue Secretary said that the online gaming industry is currently paying only 2-3 per cent GST, which is less than the five per cent GST levied on food items consumed by the common man. Malhotra pointed out that a member of the GST Council even pointed out that online gaming companies were paying tax at the rate of 18 per cent gross gaming revenue (GGR), which works out to just 2-3 per cent GST.

In the last financial year, the government got GST of only Rs 1,700 crore from the tax on such business. Had the tax been levied on the full value, the tax collection would have been around Rs 15,000 to 20,000 crore. But this (tax on online gaming companies) is at a much lower rate than what online gaming companies are paying, he said. We estimate that this amount should be eight to 10 times that. If the momentum is sustained, we can generate Rs 15,000 to 20,000 crore annually from this.” These companies took advantage of the skill and stake difference and paid 18 per cent GST on platform fee or GGR only.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *