GST council unlikely to reverse 28% tax on online gaming; Relief on retrospective tax claims
The GST Council is unlikely to reverse the 28% goods and services tax (GST) on the online gaming industry, despite concerns from industry stakeholders. According to sources close to the matter, the government believes the tax has been generally accepted by both players and companies, and the growth in tax collections from the sector supports this view.
As reported by Business Today, an insider noted, “It is unlikely that the 28% GST would be withdrawn. The industry and customers seem to have settled into it, as indicated by the steady increase in tax collections from online gaming.”
Earlier this month, The Financial Express reported that, according to an official, the government is considering providing some form of relief to the money gaming industry regarding retrospective tax claims. However, there is still uncertainty surrounding GST notices for past payments, which many companies find worrisome. Numerous firms have filed petitions on this issue, and these will be heard by the Supreme Court. “Many writ petitions have been filed on the issue and will now be heard by the Supreme Court. The ruling is being awaited by companies,” stated another source.
