Panel Of Ministers Likely To Recommend 28 Per Cent GST On Online Gaming According to an EY-All India Gaming Federation Report, it is said that online gaming industry has the potential to generate $2 billion by 2023

The panel of state finance ministers is likely to recommend a uniform GST levy of 28 per cent on online gaming irrespective of whether it is a game of skill or game of chance, according to a PTI report. Currently, the GST levied on online gaming is 18 per cent, which is the fee charged by online gaming portals. The report stated that the group of ministers (GoM) report is almost in its final stages and would be submitted before the GST council soon for consideration.

The group of ministers, chaired by Meghalaya chief minister Conrad Sangma, had in its earlier report submitted to the Council in June suggested that a 28 per cent GST on the full value of the consideration, including contest entry fee, paid by the player, without making a distinction such as games of skill or chance. However, the Council had asked the GoM to reconsider its report.

As a follow-up, the GoM took the views of the Attorney General and also met stakeholders from the online gaming industry. As per the report, although the GoM deliberated on separate definitions for 'games of skill' and 'games of chance', it finally decided to tax both as demerit goods attracting a 28 per cent GST.

The message has to be clear that online gaming is a demerit good. However, some relaxation in valuation methods could be provided, sources told PTI.

The report also added that the GoM report in June had suggested that the GST should be levied on the entire amount received as consideration from the participant.

According to an EY-All India Gaming Federation Report, it is said that the online gaming industry has the potential to generate $2 billion by 2023 and the online real money game players are expected to grow from 80 million in 2020 to 150 million by 2023.