Online gaming industry to approach new government requesting for GST reduction
By MYBRANDBOOK
The online gaming industry is planning to approach the new government after the general elections to request a reduction in Goods and Services Tax (GST). They propose that the tax should be computed on the Gross Gaming Revenue (GGR) instead of the full face value. This proposal is based on the belief that the current high tax rate is unsustainable for startups in the sector.
Starting from October 1, 2023, the GST on online gaming has been levied at full face value instead of GGR. Gross gaming revenue (GGR) is the difference between the amount wagered minus the amount won.
Since October 1, the revenue from online gaming has increased 5-6 times from Rs 200 crore to Rs 1100 per month.
“The industry was growing at over 20 percent year on year before October 1, 2023. In six years, at this growth rate, the same revenue of Rs 1100 crore per month can be reached even with the GST computed on GGR. But at least the sector will grow and will be able to compete with the offshore gaming companies which are not registered in India,” a source said.
Many offshore operators masquerade as legal entities offer games and indulge in money laundering. These platforms accumulate funds in proxy accounts and then transfer them via illegal means such as hawala, cryptocurrency, and other illegal channels. The government has reportedly identified 114 illegal betting and gambling platforms operating in India.
“The offshore gaming companies are a bigger nuisance which are not even registered in India. The offshore gaming companies are resulting in a huge tax revenue evasion and outflows of funds which will lead to a slowdown in the growth of domestic companies making them unsustainable,” the same source said.
The Indian online gaming market size is estimated at $2.5 billion while globally, it is worth $159 billion.
BREAKING NEWS
TECHNO TRENDS
Google Pay has added "Open Wallet" shortcut
With the introduction of the "Open Wallet" shortcut, Google Pay has impro...
TRAI targets to finalise National Broadcast Policy by May-end
The Telecom Regulatory Authority of India will finalise the National Broa...
TAC Security becomes Cyber Security Assessor for the App Defen
The cybersecurity company, TAC Security has been selected as a key Cyber ...
InterGlobe’s Rahul Bhatia and C.P. Gurnani together announce
In a move that is set to transform the AI landscape, Rahul Bhatia, Group M...
E-Magazine
TECHNOTAINMENT
Salman Khan trolled for singing with B Praak at Anant Ambani's
To celebrate Mukesh Ambani's youngest son Anant Ambani’s 29th birthday
Disney+ Hotstar wins the Best OTT Platform of the year
Film Critics Guild and Group M Motion Entertainment, in collaboration with
MOVERS & SHAKERS
Nium Appoints Alexandra Johnson appoints as Chief Payments Off
Nium, the leader in real-time cross-border payments, today announced the ap
SISL elevates Ankita Wadhawan as CEO—End User Computing
The IT service provider, SISL in a LinkedIn post announced the elevation
OPEN YOUR EYES
INTERVIEWS
ETEK building a cybersecurity aware community
ETEK is a Global Managed Security Services expert with 30 years of experien
Cisco committed to help build trusted, resilient future for or
Cisco is delivering on its promise of the AI-driven Cisco Security Cloud to
HOT PICK
COLORFUL rolls out an array of gaming laptops
COLORFUL launched its incredible series of COLORFUL EVOL P15 gaming laptop
Dell Technologies launches new AI-powered commercial PC portfo
Dell Technologies has launched the broadest portfolio of commercial AI lap
MAKE IN INDIA BRANDS
TAC SECURITY SOLUTIONS
WIPRO LTD.
LAVA INTERNATIONAL LTD.
AMARA RAJA POWER SYSTEMS LTD.
EMINENT CIO'S OF INDIA
ICONS OF INDIA
Technology Icons Of India 2023: Natarajan Chandrasekaran
Natarajan Chandrasekaran is the Chairman of the Board of Tata Sons, th...
Technology Icons Of India 2023: Anil Kumar Aggarwal
Anil Agarwal is an Indian billionaire businessman who is the founder a...
Technology Icons Of India 2023: Nandan Nilekani
Nandan Nilekani is the Co-Founder and Chairman of the Board, Infosys T...
PARTNER SPEAKERS
PSU
NPCI leading India towards Digital payments
The National Payments Corporation of India (NPCI) is an initiative tak...
BBNL empowering rural India digitally
BBNL provide high speed digital connectivity to Rural India at afforda...
ITI Limited widening its focus area
ITI Limited is a public sector undertaking company, has manufacturing ...
VIDEOS
Top 25 Brands
Value-Added Distribution
SONATA INFORMATION TECHNOLOGY LIMITED
Sonata Software Limited is a leading Modernization engineering company...
IVALUE INFOSOLUTIONS PVT. LTD.
: iValue Info Solutions is a value added distributor, provides solutio...
SATCOM INFOTECH PVT. LTD.
Satcom Infotech Pvt. Ltd is a distribution houses in security in India...
ITFORUM 2024
WIITF 2024
CMO of the Year
WOMEN LEADERSHIP
EMINENT CIO's OF INDIA
TRENDS IN TECHNOLOGY
MORE VIDEOS
ADVERTISEMENTS
TECHNOLOGY DISRUPTION
UNICORNS REVOLUTIONISING
