In a joint report, industry body ASSOCHAM and professional services company Earnest & Young (EY) have warned that the online gaming industry could suffer if the GST rate is increased to 28 per cent
The online gaming industry is regarded as a sunshine sector but it has also ruined families due to the propensity of many to gamble away life's savings.
The Group of Ministers (GoM) will deliberate and finalize recommendations which will be sent to the GST Council, headed by Finance Minister Nirmala Sitharaman and comprising state finance ministers.
The GST Council had last week decided to constitute a Group of Ministers (GoM) to address various concerns raised by the states in relation to the constitution of the Goods and Services Tax Appellate Tribunal (GSTAT)
The GoM is mulling 28 per cent GST on gross revenue of online gaming platforms who currently pay 18 per cent of net income.
Pay-to-play online skill games are operationally different from lottery betting and gambling and GST levied may face constitutional challenges in the eye of law.