GST: How much GST will be charged on online games, Group of Ministers has decided the rate, now GST Council will decide

highlights

The group of ministers has expressed its intention to impose a uniform rate of 28 percent on online gaming.
The winner of the prize in all types of games will have to pay 28% GST.
For this, now the method of tax assessment can be changed.

New Delhi. The rules for collecting tax on fast growing online games in the country and the world will be prepared soon. For suggestions on this, the committee formed under the leadership of the finance ministers of the states has almost finalized the rates and will soon send its recommendation to the GST Council. If the Council also approves this, then soon the rate of GST will be fixed on the earnings from online gaming.

Sources say that the Group of Ministers has expressed its intention to impose a uniform rate of 28 percent on online gaming. This rate will be applicable to all types of online games. In this, whether the player wins on the basis of his skill or makes money by gambling with luck. The winner of the prize in all types of games will have to pay 28% GST. However, for this now the method of tax assessment can be changed.

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What is the current GST rate
At present, GST is being charged at the rate of 18 percent on online gaming. This tax is levied on the entire amount. Online gaming portals charge this amount as fees from their customers. Sources say that the report of the Group of Ministers is almost final and it will be placed before the GST Council soon. In this, along with the recommendation to increase the rate of GST, it has also been suggested to revise the formula for its calculation.

What will be included in GST
The Group of Ministers has clarified in its recommendation that what will be included in the amount to be collected as GST. The Council had suggested in June that in the case of online gaming, 28 per cent GST should be charged on the full value. This will also include the entry fee paid by the player. After this, the GST Council had asked to reconsider this report. In such a situation, it is believed that the formula for fixing GST can be changed.

Online gaming is spreading rapidly in India
The government is not looking eager to impose GST rate on online gaming. This sector is spreading very fast in India. At the time of lockdown, the online gaming industry made a lot of money. According to the KPMG report, the online gaming market in the year 2021 was only Rs 13,600 crore, which is expected to reach Rs 29 thousand crore by 2024-25.

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Most online gamers in Asia
If most online games are played anywhere in the world, then they are Asian countries. Their share is more than half of the total gamers. There are 174.6 million gamers in Asia, which is about 55 percent of the total gamers. This year, the total number of gamers has increased by 4.6 percent compared to last year, but the revenue has decreased for the first time in 15 years.

Tags: business news in hindi, gst, online games

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