There was going to be a 28% GST on online gaming platforms recently, however, the government has heard about everyone's opinion and has come up with a different solution.
They have decided to set up a panel to dig deeper into this manner.
The Panel will make sure to settle this ambiguity whether these online gaming platforms fall under the category of gambling.
Just a few days ago, there was a report on the fact that the Indian government might be thinking about putting on a high GST on online gaming platforms. Fortunately or unfortunately, they have not levied the taxes as of yet. However, they have come up with some different solutions, and honestly, this was a better option. In today’s blog, we will be getting into the details of the Panel that the Indian government has decided to set up to get into the online gaming market and discuss the taxes and everything.
Why is the Government Setting up a Panel?
For those who still feel a bit lost, recently there was a bill regarding having a 28% GST on online gaming platforms, and not on the gross revenue, but the platform entry fees. This came as quite a shock to the whole industry, as this was an attempt to put online gaming into the category of gambling and horse racing. Hence, after a lot of discussions and arguments, there has been a solution to the problem.
The government has decided that there will be a specific Panel to look after this whole affair. They will be getting into the online gaming market and trying to find out if they are different from the gambling platforms. Not only this, it has already been previously proven that online gaming platforms are games based on skills, and not on luck. Nonetheless, there appear to be ambiguous tones in previous reports. The panel has to make sure that the platform will be rightly charged with taxes. Overall, this is a good idea as it also shows that the government is finally taking an interest in the gaming market of India, though it started with the online gaming scenario.
Who is going to be a part of the Panel?
Another important question that might make you think is who is going to be the members of the panel. Well, as the whole situation has started because of the whole taxing and GST debate, the CEO of Niti Ayog will be one of the important members of the panel. The other members will be the secretaries of the various departments like IT, Information, Sports, Youth Affairs, Home, Broadcasting, etc. Hence, the whole panel will make sure to get into the whole issue in-depth and also conduct thorough research on how the online gaming platform does affect the mentality of its users and if it can be considered a gambling place.
How is this going to affect the Indian Gamers?
Well, setting up the panel is not going to affect Indian gamers or the online gaming market that much. However, if the panel does come up with a decision that the online gaming market is something related to gambling and proves that it is similar to gambling or horse racing, then they will be in grave danger. The small online gaming platforms will not be able to survive, and not many people will want to take part in them as the entry fees will be increased automatically.
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