homestartup NewsGST on online gaming likely to face judicial review, technical challenges for revenue authorities, says expert
GST on online gaming likely to face judicial review, technical challenges for revenue authorities, says expert
GST Council has agreed to levy 28 percent goods and services tax (GST) on the full value of online gaming, horse racing, and casinos, with no distinction between games of skill and chance. Expert believe that this move will not only eradicate the entire industry but also result in significant job losses at gaming companies, potentially leading to their closure.
The industry stakeholders have expressed concerns over the GST Council's decision to impose a 28 percent tax on the full face value of transactions or entry fees in online real-money gaming, warning of severe consequences. It is predicted that this move will not only eradicate the entire industry but also result in significant job losses at gaming companies, potentially leading to their closure.
Abhishek A Rastogi, Founder of Rastogi Chambers, stated that the amendment to tax online gaming at such a high rate would likely face judicial review. He further said that collecting the money with a retrospective date could pose technical hurdles for the revenue authorities.
“With highest respect to the GST council, this amendment to tax online gaming at 28 percent will have to cross the judicial review,” Rastogi said.
“To me it appears that it will be very difficult for the revenue authorities to collect the money with a retrospective date because of technical hurdle which may happen,” he added.
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