Nagpur: Monthly GST collections from online gaming companies have jumped over 400 percent to about Rs 1,200 crore since October 1 when the 28 percent levy on e-gaming platforms has come into effect, a report said on Friday.
The GST Council had in August last year clarified that online gaming companies will have to pay 28 percent Goods and Services Tax (GST) on the full face value of bets placed on their platforms. Foreign e-gaming companies were mandated to register with the GST authorities, failing which their portals would be blocked. The amendments to GST law came into effect from October 1,2023.
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Thursday 19 Dec. 2024
According to the report, there has been a jump in GST revenues from online gaming companies post October 1. From monthly revenue of Rs 225 crore, the aggregate tax paid by the sector now stands at about Rs 1,200 crore. GST officers had last year sent around 71 show cause notices to online gaming companies for alleged GST evasion of over Rs 1.12 lakh crore during financial year 2022-23 and 2023-24. However, no overseas online gaming company has registered in the country since October 2023.
These overseas companies keep changing their VPNs and change their websites when they are blocked. It is a challenge that the tax officers are facing, the report added.
The spate of notices to online gaming companies follows the GST Council’s clarification in August that 28 percent tax would be levied on full value of bets placed on online gaming platforms. The GST Council is chaired by the Union Finance Minister and comprises Finance Ministers from all States and Union Territories.
