Playing online games may be expensive, in this case 28% GST will be applicable

Such online games, where winning depends on a certain result, GST at the rate of 28 per cent will be levied on the entire amount of the stake.

However, the report of the Group of Ministers (GoM) constituted on online games could not be discussed in the GST Council meeting.

Image Credit source: Representational Image

Central Board of Indirect Taxes (CBIC) chief Vivek Johri said on Saturday that such online games, where winning depends on a certain result, will attract GST at the rate of 28 per cent only on the entire amount of the bet. However, the report of the Group of Ministers (GoM) constituted on online games could not be discussed in the GST Council meeting. But Johri said that the department is of the opinion to levy tax at the rate of 28 per cent only on the amount bet by the player in an online game.

Why is the GST issue important on online games?

His comment assumes significance in the context that the tax evasion case of online gaming major Gamescraft Technology Pvt Ltd (GTPL) is still pending in the court. The Directorate General of GST Intelligence had issued a notice to Gamescraft last September for non-payment of GST tax of Rs 21,000 crore.

When asked about CBIC’s stand on the matter in case no decision was taken on online gaming in the GST Council meeting, Johri said that the department would levy tax at the rate of 28 per cent only on the entire amount spent on betting or betting. Takes into consideration the profit margin and not just the profit margin.

Johri said that gaming is considered as gambling, because the amount of winning in it depends on a certain result. The GOM report on online gaming was submitted two days back. In such a situation, its copies could not be given to the states on time, due to which it could not be discussed in the council meeting.

Apart from this, let us tell you that in the 48th meeting of the GST Council, the GST Council has decided to take some cases out of the category of crime. Along with this, the threshold for initiating prosecution has been doubled to Rs 2 crore. Revenue Secretary Sanjay Malhotra gave information about these decisions taken after the 48th GST Council meeting was over. GST on pulse husk has been reduced from 5 percent to zero.

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