Finance Ministry Wants Different GST Rates For Online Games Of Skill, Chance

Finance Ministry Wants Different GST Rates For Online Games Of Skill, Chance

SUMMARY

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.

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