Tue Sep 10 23:33:41 UTC 2024: ## GST on Online Gaming Stays at 28%, Revenue Bonanza Drives Decision

**New Delhi:** The 28% Goods and Services Tax (GST) on online gaming is here to stay, with no plans for a rollback or reduction. The decision was driven by a significant revenue surge since the tax was implemented last October.

The GST Council, in a meeting on Monday, decided to maintain the 28% rate, citing a whopping 412% increase in online gaming revenue over the past six months, exceeding Rs 6,909 crore. Casino revenue also saw a 30% rise during this period.

No state, including Goa, which heavily relies on casino revenue, opposed the tax rate. The Council also declined to discuss the outstanding tax liabilities of the online gaming sector, amounting to Rs 1.5 lakh crore, citing pending judicial proceedings.

While the Finance Ministry proposed a new provision to allow for non-recovery of wrongly levied or under-levied GST, it might not apply to cases before July 2023, leaving the gaming industry with some concerns.

The 28% GST, a significant jump from the previous 18%, had been met with apprehension from the gaming industry. However, the substantial revenue generated has clearly proven a game-changer for both the Centre and state governments.

Read More