Games24×7 Regains Stability From the GST Hike

The government raised the GST rate on online gaming and casinos from 18% to 28% in August 2023. Games24×7, which is an online gaming company, was affected due to this GST. As per the latest updates, the company has regained stability in its revenue to the level where it was before the government announced the 28% GST in 2023.

Before October 2023, skill-based games were taxed at 18%. In the 50th GST meeting in July 2023, online games, including skill-based and chance-based games, were put in the 28% GST slab. It came into effect on October 1, 2023.

As per the reports, the industry has struggled since the increase in GST. The hike resulted in a higher tax burden for gaming companies. Many companies faced challenges, including difficulty in raising funds, low profit margins, and stalled revenue growth after the GST hike.

Despite these challenges, Games24x7 is doing well again after facing problems due to the GST hike on online gaming. It has adjusted its business and is now growing steadily.