State hopes for ₹700 cr GST from online gaming

With the passage of the Maharashtra Goods and Services Tax (Amendment) Act in the recently concluded winter session of the assembly, the state government hopes to mop up an additional ₹700 crore a year towards GST from online gaming and related industries such as betting, casino and horse-racing; GST proceeds from these industries are also expected to grow at a rate of 30% per year.

This is because the tax applicable on these industries has been hiked to 28% of the pooled amount, in line with the central GST law. Portals operating from outside the country have also been brought under the ambit of the law.

“We have made GST number mandatory for all operators who engage players from the state. They cannot claim that their IP address is from another country and escape paying tax, as we now have powers to block such IP addresses,” said an official from the state GST department.

An official from the finance department said that the online gaming industry had grown at a rate of 30% over the past five years and they expected similar growth over the next five years. “The penetration of online gaming is more in rural areas, not just in Maharashtra, but in other states as well. High taxation on portals and stricter enforcement will also deter players, who are generally in the 15-35 age group,” said the official.

GST officials said the amendment would help tighten enforcement. “Earlier, the law did not allow us to catch hold of evaders, who could challenge the action in court. The change will help us recover taxes from such entities,” said an official.

Source from: https://www.hindustantimes.com/cities/mumbai-news/state-hopes-for-700-cr-gst-from-online-gaming-101703703782883.html