The Finance Ministry is unlikely to consider a review of the GST Council’s decision to tax real money games at 28 percent, sources told CNBC-TV18 on Tuesday, July 18.
Minister of State for Electronics and IT Rajeev Chandrasekhar had on Monday said that his ministry will request the GST Council to reconsider tax on online gaming. However, sources suggest that the chances of that happening seem very bleak.
They said that the GST council unanimously agreed on a 28 percent rate for real money games and there seems to be no proposal for a review.
Council members were of a collective view that real money gaming should be taxed as a sin-good. States voiced concerns about gaming having a negative impact on youth and society, they said.
The GST Council on July 11 announced that a 28 percent tax will be imposed on the turnover of online gaming companies, horse racing and casinos. The decision received a lot of backlash from the gaming industry, which called it a “killer blow”.
Over 9,500 gamers in the country have also written to the Finance Minister, addressing various concerns around the decision and saying that they would quit gaming altogether.
The letter was collectively written by online gamers from different backgrounds across the nation, participating in card games, AAA games, e-sports, fantasy games, and casual online games.
Source: CNBC TV 18
https://www.cnbctv18.com/technology/finance-ministry-unlikely-to-review-28-gst-on-real-money-games-17254821.htm
https://www.cnbctv18.com/technology/finance-ministry-unlikely-to-review-28-gst-on-real-money-games-17254821.htm
