The finance ministry is considering classifying online games into two categories – games of skill and chance, and levying a differential rate of Goods and Services Tax
Under this structure, the games that are dependent on a certain outcome or are in the nature of betting or gambling would attract 28% GST while games of skill will attract 18% GST
Currently, a tax rate of 18% is levied on the commission collected by online gaming platforms for games not involving betting or gambling
In what will come as a major relief for the online gaming industry, the finance ministry is reportedly considering classifying online games into two categories – games of skill and chance, and levying a differential rate of Goods and Services Tax (GST).
Under this structure, the games that are dependent on a certain outcome or are in the nature of betting or gambling would attract 28% GST. On the other hand, games involving some amount of skill could be taxed at a lower 18%, news agency PTI reported.