All the online gaming companies, including Gameskraft and Delta Corp, are under the government’s radar regarding the GST revenue. Government officials do not plan to spare any gaming companies, even if they are already troubled and will issue the notice for tax as per the calculations by the GST department.
The GST council will hold a meeting in June after the new government comes in and will review the taxation issues of the gaming industry. In the past years, the industry has witnessed a surge in its revenue as several people are attracted towards online gaming. The GST charges on the total face value of the companies have been set to 28 per cent, and there are no chances of making any changes to the same.
All the prominent online gaming companies have to continue to pay 28 per cent GST on their revenue. This is because the government has seen an increase in revenue by 5-6 times in the past few months. As per the reports, the GST was calculated at Rs. 200 crore per month, which has now increased to Rs. 1,100 crore per month.
Although the gaming companies and the industry representatives have requested the council to reconsider the existing charges, there has not been any positive response from the other end. After the meeting in June, the final review and decision will be made, and the companies will have to be bonded by the same. The future and fate of online gaming in India depends upon the upcoming GST council meeting, and hence, it is the recent interest of game enthusiasts and representatives alike.
