A group of investors in the online gaming industry in India have written to the government to reduce the Goods and Services Tax (GST) on online gaming.
 |
| online game GST increased india |
How is GST charged on online gaming
Currently, the GST on online gaming is 18%, which is the same as the GST on casinos and gambling. The investors argue that this is too high and is discouraging investment in the online gaming industry. They point out that the GST on other forms of entertainment, such as movies and music, is much lower.
The investors are hoping that the government will reduce the GST on online gaming to 5% or 12%. They believe that this would make the industry more attractive to investors and would help to boost the growth of the industry.
While the Indian Union Finance Ministry has announced that 28 percent GST will be levied on online gaming, more than 100 online gaming companies have written to the government to reduce this 28 percent tax.
The government has not yet responded to the letter from the investors. However, the issue is likely to be debated in the coming months.
Here are some of the reasons why the investors
are calling for a reduction in the GST on online gaming:
The current GST rate is too high and is discouraging investment in the industry.The GST on other forms of entertainment, such as movies and music, is much lower.Online gaming is a growing industry with a lot of potential.A reduction in the GST would make the industry more attractive to investors and would help to boost its growth.
It remains to be seen whether the government will agree to reduce the GST on online gaming. However, the investors are hopeful that their request will be granted.