The Centre is now collecting INR 1,200 Cr in monthly GST from gaming platforms since October 1 last year as against INR 225 Cr earlier
Online gaming platforms are being charged 28% GST on the full face bet value since October 1, 2023
No overseas online gaming platforms have registered in the country since October 2023, a senior government official said
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The union government’s monthly GST collections from online gaming platforms have reportedly soared more than 400% since the imposition of the much-debated 28% tax levy in October last year.
A senior government official told news agency PTI that the Centre is now collecting INR 1,200 Cr in monthly GST from gaming platforms since October 1 last year.
“There has been a jump in GST revenues from online gaming companies post October 1. From monthly revenue of INR 225 Cr, the aggregate tax paid by the sector now stands at about INR 1,200 Cr,” the official said.
Speaking about mushrooming illegal overseas online gaming sites, the official said that no such platforms have registered in the country since October 2023. The official added that tax officials are facing challenges as such platforms resort to changing website addresses to dodge authorities.
“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 official said.
The spurt in collections follows the GST Council’s decision in August last year to levy 28% GST on online gaming platforms on the full face value of bets. Afterwards, the government also mandated foreign e-gaming platforms to register with GST authorities or face ban in the country.
Since then, much has transpired. Immediately after the GST Council’s decision, homegrown players urged the government to shelve the plans citing detrimental impact on the ecosystem and potential job losses.
However, the government went ahead and solidified the move in law later. The new tax regime came into effect from October 1. Following the increase in GST, gaming players such as Hike and MPL laid off hundreds of employees while startups such as Striker and One World Nation either shut shup or temporarily halted their real-money gaming operations.
Piling on top of that was a bevy of show cause notices reportedly sent to at least 71 online gaming companies for alleged GST evasion to the tune of INR 1.12 Lakh Cr between financial years 2022-23 and 2023-24.
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