Online gaming companies, which have slammed the Goods and Services Tax (GST) Council’s decision to impose the maximum 28% indirect tax on the full face value of the business, said they are awaiting details on the applicability of the levy before deciding their next steps. Gaming companies are learnt to be discussing the course of action and deciding on the key clarifications they need from the government before approaching the finance ministry. On Tuesday, the GST Council agreed to impose a 28% tax on online gaming at the full face value, shocking the industry. Currently, online real-money gaming companies charge a platform fee in the range of 8- 15%, said one of the sources cited above. “There is a split on this issue considering the bigger gaming platforms have a cushion of high profits that the smaller companies don’t enjoy.”The difference of opinion has also emerged between fantasy sports companies and other real-money gaming companies, which offer card games such as poker and rummy.

Source: Economic Times July 15, 2023 05:07 UTC