Online gaming firms likely to be left in the lurch at GST Council meet
NEW DELHI : New Delhi: Online gaming companies hoping for relief from the GST Council on retrospective taxes adding up to ₹1.12 trillion may have to wait longer. The federal indirect tax body is unlikely to consider the industry’s plea during its meeting on Saturday, according to two officials informed about the council’s plans. Companies with games involving real money have been treading a tightrope after authorities last year issued 71 notices for evasion of good and services tax for the period prior to 1 October, when a 28% GST rate was specifically prescribed on the full value of deposits made by players.
Before that, the law did not specify tax rates on online gaming, and companies used to pay 18% tax on the platform fee or commission, typically 5-20% of the deposits. While the Centre has approached the Supreme Court challenging a favourable order secured by the industry from a lower court, the GST Council was expected to consider the impact of the tax demand on the industry’s viability. “We are confident that our urgent plea will be heeded and addressed," said Saumya Singh Rathore, co-founder of online gaming platform WinZO.
That’s unlikely, however, at Saturday's meeting, according to the two officials mentioned earlier. They declined to be identified. The Council will discuss amendments to GST laws that the central government can include in the Finance Bill to be presented next month and steps to improve the ease of doing business, these officials said.
The GST Council meeting as well as the Union government’s budget consultations with state finance ministers are scheduled for Saturday. The finance ministry and the GST Council did not reply to emails sent on Sunday seeking comments. The meetings on Saturday will
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