Over 50% gaming cos saw revenue stagnate or dip after 28% GST norm: Report
Over half of the online gaming sector enterprises in India saw their revenues fall or stagnate after the Centre last year imposed a 28 per cent goods and services tax (GST) on total deposits on these platforms, a report released on Wednesday said.
The report titled "Impact of new GST law on skill-based online games" was released jointly by EY and US-India Strategic Partnership Forum (USISPF), based on the latter's survey of 12 such companies.
It showed that only five companies were able to record revenue growth since the GST amendment. Seven companies had either recorded degrowth or had to face stagnant revenues.
"In case of degrowth, the decline is as high as up to 50 per cent for two companies," it said. "Such decline in revenue growth stands in contrast to an industry which was recording exponential growth rates."
Before October 1, 2023, online skill gaming operators were subject to GST of 18 per cent of the gross gaming revenue/platform fees - the amount retained by the online gaming platform.
From October 1, 2023, however, online money games have been made subject to the highest GST rate of 28 per cent on the total money deposited with the platform.
