Tag: Online Gaming

GST Council Meet: Centre says not taxing online gaming firms retrospectively as states flag concerns

According to Dua, while initial concerns remain regarding the regulations, cautious optimism is emerging. Data is being analyzed by officials to understand the impact on businesses and consumers. This, along with the Finance Minister's commitment to review, fuels hope for a potential revision that fosters continued industry growth.(Representative image via Unsplash)

Previously, online gaming companies paid 18 percent tax on the platform fees because the law was ambiguous, while betting and gambling always fell under the 28 percent slab.

India’s booming online gaming industry faces challenges in transition to 28 percent GST bracket

Moving on from taxes and revenues, the report also said that India’s online gamers are expected to grow at a CAGR of 5 percent and reach 53.8 crore by FY28. (Representational image via Unsplash)

While the government’s efforts to regulate and tax the sector are understandable from a revenue generation and user protection standpoint, it’s crucial to ensure that these measures do not stifle the industry’s potential.

Online gaming companies to lessen spend during ICC Men’s Cricket World Cup amidst 28 percent GST

Mobile Premier League announced 350 layoffs, Rush Gaming Universal let go of 55 people, Spartan poker fired 125 people and real money gaming platform Fantok suspended operations.

On July 11, the GST Council decided to impose 28 percent tax for online gaming. On August 2, Finance Minister Nirmala Sitharaman clarified that the 28 percent tax will take place from October 1.

Gaming influencers – How would 28 percent GST affect marketing spends on influencers?

As per Rohit Agarwal,founder and chief executive officer, AlphaZegus, in the influencer space, the imposition of 28 percent GST is less of a concern than recession, which is a greater concern. (Representative Image: AronPW via Unsplash)

Starting October 1, a 28 percent GST will be imposed on the face value of both games of skill and games of chance. Storyboard18 connected with an influencer and industry experts to understand the impact of the levy on brands’ marketing spends on influencers and therefore, the influencer economy.

Esports celebrities are going to be superstars of the future: KRAFTON’s Srinjoy Das

This move comes after Free Fire, a rival battle royale game from Singapore tech giant Sea's gaming arm Garena, also made a comeback to the country after being suspended for about one and a half years.

KRAFTON is addressing BGMI as a cultural session for the first time, says Srinjoy Das, Associate Director, Marketing, KRAFTON India.

GST Council’s meeting today: What’s at stake for online gaming industry

Structural shifts toward a higher propensity to pay for in-game features and the burgeoning popularity of casual and midcore games are poised to play pivotal roles in shaping the landscape by FY28. (Representative Image via Unsplash)

The gaming industry is hopeful that the government will consider their concerns and arrive at a fair and sustainable decision for the valuation of GST on online gaming platforms.