GST on online gaming: Full rollback of 28% tax unlikely
Even as the online gaming industry awaits a review of the 28% goods and services tax (GST) on the sector, the GST Council is unlikely to roll back the levy. According to sources, the government is of the view that the tax has now been accepted by players and collections are also doing well.
However, with industry concerned about payments of GST notices in the past, the issue may be taken up for review.
“It is unlikely that the 28% GST would be withdrawn. The industry and customers seem to have settled into it, as is being indicated by the continued growth in tax collections from online gaming,” said a person familiar with the development.
But the issue of GST notices for demands on past payments may be relooked given that many firms are worried about paying these. “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,” said a second source.
