Online Gaming Platforms Could End Up With Huge Tax Demands

Real-money-online gaming platforms could end up with huge tax demands. This could lead up to about 45,000 crores, which would be known after an assessment of the Central Board of Indirect Taxes and Customs (CBIC), ET reported.

The gaming companies who have placed themselves as real money gaming platforms, offering games of skill have been paying 18% tax since their entry in 2017, they may have the pending tax demand to iron upon. This comes up, as per the CBIC pointing out that, there are no differences between games of skill and games of chance and that both are to come under the 28% taxable slab.

Since 2017, of the whole gaming industry, about 77% are online real money gaming companies, who have paid less than 5,000 crores as GST. The real tax liability of these companies is thought to be over 50, 000 crores. Offshore gaming companies also comes under this, where the tax digits are over 12,000 crores, reported ET. The real money gaming companies have been cloaking themselves as games of skill.

It was 18% GST on gross gaming revenue of games of skill and 28% GST on total bet value on games of chance but in 50th GST council meeting, the change was proposed and the amendments were passed in August this year after the 51st GST council meeting. The gaming industry is one among the fast-growing segments of Indian industries. Coming under the scanner could turn into a tough blow for the gaming companies and a huge task for the CBIC.