‘Online gaming GST order hits one nation, one tax spirit’
SummaryOn 29 September, finance ministry’s revenue department notified new tax rate via an amendment to Central Goods and Services Tax Act, 2017. The amendment comes after 51st GST Council meet, on 2 August, recommended a tax rate of 28% on gross revenue of online gaming firms.
NEW DELHI : Online real-money gaming firms, and lawyers representing multiple companies in this sector, labelled the Centre’s way of implementation of the new goods and services tax (GST) rate on online gaming companies unprecedented. The stakeholders of the sector, which has remained under fire for numerous taxation issues through the year, claimed that the Centre’s notification of the new online gaming GST regime—done before all states have fully adopted it—could be used as a precedent for breaking the “one nation, one tax" format of GST going forward, and is also in contravention of the law.