Online gaming industry may have to pay 28% GST

Ahead of the GST Council meeting scheduled for July 11, online gaming companies believe that a GST of 28% on online gaming can hinder the sector's progress. The online gaming industry in India is concerned about the possibility of a higher GST rate being imposed on their services. The current GST rate for online gaming is 18%, but there is a proposal to increase it to 28%.

Currently, the debate is between an 18 percent or a 28 percent GST on online gaming and betting. The online gaming companies are seeking a lower taxation, citing that a 28 percent tax would have a notable impact on companies' cash flows, constraining their ability to invest in innovation, research, and business expansion.

The online gaming industry argues that a higher GST rate would make their services less affordable for consumers and would discourage investment in the sector. They also argue that the higher GST rate would be unfair, as it would not be applied to other forms of gaming, such as lottery and horse racing.

Expert feels that, a higher tax burden would have a notable impact on companies' cash flows, constraining their ability to invest in innovation, research, and business expansion.

The government has not yet made a decision on whether or not to increase the GST rate for online gaming. However, the online gaming industry is concerned that a higher GST rate would have a negative impact on the sector.

The online gaming industry is hoping that the government will decide not to increase the GST rate. They argue that a higher GST rate would have a negative impact on the sector and would discourage investment.