Indian Authorities Confirm Non-Retrospective Application of GST on Online Gaming

Indian authorities have clarified that the Goods and Services Tax (GST) imposed on online gaming companies will not be applied retrospectively. This announcement follows significant amendments introduced by the Goods and Service Tax Council regarding the taxation of online gaming.

Under the newly established framework, a GST rate of 28 percent will be applicable to online gaming, irrespective of whether these gaming activities are categorized as games of skill or games of chance.

After a council meeting on Saturday, Revenue Secretary Sanjay Malhotra affirmed that there would be no retrospective taxation. This clarification provides certainty for online gaming companies regarding their tax liabilities.

To date, 18 states and union territories in India have already implemented the necessary amendments to their GST laws in accordance with the new framework. The remaining 13 states are in the process of incorporating these amendments.

Delhi's Finance Minister, Atishi, expressed concerns about the recently proposed 28 percent GST on online gaming firms. She warned that this taxation could potentially jeopardize the entire Indian startup sector, leading to significant job losses and hindering foreign investments.

The clarification from Indian authorities regarding non-retrospective application of the GST on online gaming offers some relief to the industry, ensuring that companies will not be burdened with past tax liabilities under the new tax framework.

By fLEXI tEAM