Online Gaming Companies Involve in Betting and Gambling, Taxable at 28% GST: Centre Tells Supreme Court
The Centre informed the Supreme Court that online gaming platforms, which involve betting and gambling, are liable to pay a higher tax. The DGGI stated that the staked money is taxable. The ASG clarified that while the industry pays 18% GST, it should be taxed at 28% due to its gambling nature.
Online gaming companies that indulge in betting and gambling are reportedly liable to pay a higher tax, the Centre has told the Supreme Court. As per a report of Economic Times, the Directorate General of GST Intelligence (DGGI) informed the Supreme Court that online gaming platforms involve betting and gambling, and the money staked by players on these platforms is subject to taxation. As per reports, Additional Solicitor General N Venkataraman told a bench led by Justice JB Pardiwala that the department is not taxing online or offline gaming, but the “speculative outcomes” of these games, which are considered betting and gambling. The ASG stated that the online gaming industry has been paying 18% GST by treating its activity as a service, but since it involves betting and gambling, it should be taxed at 28% under the CGST Act. Online Betting, Gaming, Gambling Ban in India: Government Issues Order To Block 1,298 Platforms Including Websites, Mobile Apps Promoting Online Betting, Games and Gambling.
Online Gaming Companies Indulge in Betting and Gambling, Taxable at 28% GST
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