GST on e-Gaming

The GST Council, the highest decision making body, tasked a Group of Ministers (GoM) to recommend the tax rate on online gaming, races and casinos. It is likely to suggest the highest rate, viz. 28 per cent GST on e-Gaming. It is yet to be seen whether it will be levied on gross gaming revenue or per transaction. At present, online games involving betting or gambling attract 28 per cent rate, whereas for other games, it is 18 per cent. In addition, on the commissions collected by online gaming platforms, 18 per cent tax is levied. The final call will be taken by the GST Council. The industry expects the tax on the gross revenue. It is very steep though, and could make the industry unviable. The 18 per cent rate on other games is okay. The sin rate of 28 per cent may prove detrimental to the gaming sector.

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