Centre to review online gaming tax after March
Indian government is gearing up to reassess the national sales tax policy for online gaming companies in the coming month, as stated by Revenue Secretary Sanjay Malhotra. Last year, a 28% goods and services tax (GST) was imposed on the $20 billion industry by the GST Council headed by Finance Minister Nirmala Sitharaman. The Goods and Services Tax Council had agreed to reevaluate the tax after a six-month period.
Government tax notices to gaming companies exceed Rs. 1 trillion
According to the Revenue Secretary, from October 1 through January, tax revenue from online gaming companies reached Rs. 34.7 billion. The government projects collections to be around Rs. 140 billion in the 2024-25 fiscal year. In the meantime, tax authorities have issued 71 notices to online gaming companies for alleged GST evasion, totaling over Rs. 1.12 trillion during the 2023 and 2024 fiscal years.
53 foreign gaming companies blocked for not paying tax
The Revenue Secretary also disclosed that 53 foreign online gaming companies have been blocked for not complying with tax regulations. The government is also open to simplifying the capital gains tax on both listed and unlisted stocks. They'll review options before July's budget announcement. The prospects of gaming industry are bright in India. According to a report by Ernst & Young, the industry is expected to add 250,000 jobs in India by 2025.
