Online gaming industry to approach new govt for reduction in GST post elections

The industry wishes that through the tax be computed in the Gross Gaming Revenue (GGR) rather than on the full face value.

By  Storyboard18Apr 15, 2024 10:07 AM
Online gaming industry to approach new govt for reduction in GST post elections
GGR is the difference between the amount wagered minus the amount won. (Representative Image via Unsplash)

Post the General Elections, the online gaming industry plans to approach the new government to request for a reduction in Goods and Service tax (GST), reported moneycontrol.

The industry wishes that through the tax be computed in the Gross Gaming Revenue (GGR) rather than on the full face value. Moneycontrol added that the request is on the basis that the current rate of tax is unsustainable for startups in the industry.

GGR is the difference between the amount wagered minus the amount won. The govt levied GST on full face value instead of GGR since October 1, 2023. Revenue since Oct 1 from online gaming has increased Rs.200 crore to Rs. 1100 crore per month, as per reports.

In India, the online gaming industry is estimated to be around $2.5 billion, globally it is estimated to be around $159 billion.


Tags
First Published on Apr 15, 2024 10:07 AM

More from Storyboard18

How it Works

Online gaming industry faces potential 50 percent revenue drop after 6 months of 28 percent GST implementation

Online gaming industry faces potential 50 percent revenue drop after 6 months of 28 percent GST implementation

Gaming

Forge new pacts: How community building and micro-communities drive growth in gaming

Forge new pacts: How community building and micro-communities drive growth in gaming

Gaming

Booming gaming industry: Building a career in gaming

Booming gaming industry: Building a career in gaming

Interviews

International Creators Day: Payal Gaming on the scarcity of female role models in gaming industry

International Creators Day: Payal Gaming on the scarcity of female role models in gaming industry

Gaming

Online gaming contributes to 3.7 percent of global greenhouse gas emissions: Report

Online gaming contributes to 3.7 percent of global greenhouse gas emissions: Report

Gaming

Online gaming market ripe for innovation, fueled by youth and mobile gaming, says Siddharth Patel of CVC Capital Partners

Online gaming market ripe for innovation, fueled by youth and mobile gaming, says Siddharth Patel of CVC Capital Partners

Gaming

Nearly 50 percent fall within the age bracket of 18 to 30 years in gaming: Report

Nearly 50 percent fall within the age bracket of 18 to 30 years in gaming: Report

How it Works

Indian gamer base is expected to rise to 893 million by 2028: Report

Indian gamer base is expected to rise to 893 million by 2028: Report