The 47th GST Council Meeting concluded with certain major decisions and issues discussed regarding Goods and Service tax implementation on online gaming. Finance Minister Nirmala Sitharaman briefed the outcomes of the meeting in a recently held press conference. As per information, the government will finalize GST rates to be applied to online gaming in India in the upcoming 48th GST Council meeting.

“Following Goa’s request for special treatment for casinos, it was decided that GoM will give one more hearing for online games and horse racing as well; the GoM will submit the report by July 15 and GST Council will hence meet again on this GoM’s agenda in 1st week of August,” the Finance Minister said in a statement, as reported by PTI. The GST rates for online gambling, horse racing, and casinos will be announced at the 48th GST Council Meeting, which will take place in Madurai in the first week of August.

The gaming industry in India is at its peak, with a huge population of the young generation attracted to gaming. In today’s time, gaming isn’t limited to a fun activity anymore. Skilled players are opting for a career in gaming and the popularity of esports tournaments is also skyrocketing. It is estimated that the fantasy sports sector including gambling and online gaming will see a rise in tax to 28%. As pointed out by many, high rates of tax would result in increased difficulty for both companies and players. 

All India Gaming Federation, E-Gaming Federation, and Federation of Indian Fantasy Sports claim that if the proposed GST regime is implemented, it will be “catastrophic” for the online gaming industry. In the end, the outcome of the upcoming GST meeting will decide the future of gaming in India.