Gaming in India will now be subjected to adjudged tax that the Union Govt will levy after a series of deliberations with technical domain experts to define games of skill and games of chance.
The announcement came on the heels of the GST issues that hovered for over a year now. Many states pitched for a lower tax rate on those online games which require skill. The states are of the opinion that the games of skill should not be taxed at par with games of chance.
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The draft prepared would be forwarded to states who are not part of the law committee for their reviews, sources said. They added that the GoM would also present the report to the Council. The panel will also hold discussions with all stakeholders before sealing the report.
Earlier in June, the GoM under the chairmanship of Meghalaya chief minister Conrad Sangma had suggested the GST council levied tax at 28 percent. However, it rejected the proposal asking the GoM to deliberate further on the taxation.
The gaming industry experts argued that the game of skill should continue to be taxed at a lower rate. At present, the GST of 29 percent is being levied on betting/gambling while skill gaming sector pays 18 percent tax.
Online gaming flourished during the pandemic as individuals locked at home engaged in them as a means of entertainment and social interaction.