State expects Rs. 700 crore GST from Online Gaming

The Maharashtra govt hopes to receive an additional Rs. 700 crore per year from online gaming. 

GST from online gaming

Priyanka Kumari | Dec 28, 2023 |

State expects Rs. 700 crore GST from Online Gaming

State expects Rs. 700 crore GST from Online Gaming

The Maharashtra government hopes to receive an additional Rs. 700 crore per year from online gaming and allied companies due to the newly passed GST amendment.

This is projected to be accomplished through a 28% tax rate on these industries and by bringing portals operating from outside the country under the law. The amendment is also intended to assist in tightening enforcement and recovering taxes from tax evaders.

With the passage of the Maharashtra Goods and Services Tax (Amendment) Act during the recently determined winter session of the assembly, the state government hopes to collect an additional Rs. 700 crore per year in GST from online gaming and related industries such as betting, casinos, and horse racing; GST continues from these industries and is anticipated to increase as well at a rate of 30% per year.

This is because, under the central GST laws, the tax on certain industries has been raised to 28% of the pooled amount. Portals operating across the country have also been made subject to the regulation.

According to a GST official, GST registration is required for any operators who work with players from the state. They cannot claim that their IP address is from a different country and avoid paying taxes because we now have the authority to restrict such IP addresses.

According to a finance department official, the online gaming business has risen at a 30% pace over the last five years and is likely to expand at a similar rate over the next five years.

Online gaming penetration is higher in rural areas, not just in Maharashtra but in other states as well. High portal taxes and greater regulation will also deter gamers, who are mostly between the ages of 15 and 35.

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