The 52nd Goods and Services Tax (GST) Council has convened today, on 07-10-2023 where the constitution of the GST Appellate Tribunal (GSTAT) and taxation of many goods and services have been discussed. However, no decision was taken with respect to taxation of Online Gaming.
However, the Revenue Secretary Sanjay Malhotra clarified that, “All States have agreed to pass ordinance or amendments for State GST Levy on Online Gaming, 18 have already passed”.
“In the meeting today, I am going to take up this issue and ask the GST council to make sure that these notices are withdrawn”, said Delhi finance minister Atishi. The same view was vehemently expressed in the meeting by the Delhi Finance Minister, according to sources.
Delhi FM emphasized the importance of recognizing the substantial workforce comprising over 50,000 young individuals actively engaged in the online gaming sector, in addition to highlighting the considerable foreign investments totaling Rs 17,000 crore that it has attracted. Given these critical factors, she emphasized the urgent necessity to rescind the notices to ensure the protection and sustainability of this industry.
Subsequent to the Supreme Court’s temporary stay on the Karnataka High Court’s ruling nullifying the Rs. 21,000 crore GST Demand Notice imposed on Gamerskraft, government authorities expanded their efforts to issue similar notices to other gaming companies. This has added significant pressure on the online gaming sector, which is precariously balanced on the verge of a downturn due to the recently imposed GST taxes.
The Delhi minister aims to advocate for a reconsideration of this decision during the upcoming GST Council meeting, with the objective of securing the future of the online gaming industry by proposing a more favorable taxation framework. This underscores the industry’s apprehensions and highlights the minister’s dedication to addressing them at a policy level, demonstrating a deep understanding of SEO implications.
However, no decision has been taken with regard to the GST on Online Gaming, Online Money Gaming and Casinos in today’s meeting. The Central Government is all set to move forward with the decision to levy 28% Goods and Services Tax on the face value of all money gaming transactions, even through heavy opposition, both from the industry and other states.
Support our journalism by subscribing to Taxscan premium. Follow us on Telegram for quick updates
