Online gaming companies may get GST relief

NEW DELHI: The 53rd GST Council meeting, which is taking place after a gap of nearly nine months, is likely to be action-packed with decisions impacting businesses across sectors.

As per sources, online gaming companies may get major relief on Saturday. They believe the government might cancel retrospective or backdated taxes for the Indian online gaming industry. However, the current 28% tax rate is likely to stay the same, said sources.

“For online gaming companies, apart from the rate, the aspect of valuation needs deliberation. It is hoped that for the anti-profiteering provisions, there will be some announcements with respect to determination of methodology so that different sectors can determine the quantum of the profiteering”, said Abhishek A Rastogi, founder of Rastogi Chambers, who is representing industry on these issues in different courts.

In addition, the government could introduce sunset clause for anti-profiteering provisions introduced at the time of GST implementation to prevent inflation and give benefit of reduced taxes to the customers. According to the sources, these provisions will likely be put to end in next two to three years.

Source : https://www.newindianexpress.com/business/2024/Jun/21/online-gaming-companies-may-get-gst-relief