online gaming latest news – Revenue Secretary Sanjay Malhotra has said that 28 percent GST was applicable on online gaming and casinos from the beginning. It is noteworthy that states like Delhi and Goa have raised the issue of demanding retrospective tax on online gaming companies and casinos.
Malhotra told reporters after the GST Council meeting, some members raised the issue of retrospective taxation. He was told that this was not implemented retrospectively, but was already in the law.
These liabilities already existed because these online games were played by placing bets – they were already subject to 28 per cent GST due to betting or gambling. In the 52nd GST Council meeting, Delhi and Goa raised the issue of tax demand on e-gaming companies and casinos.
Delhi Finance Minister Atishi said that online gaming companies are being sent tax notices at a higher rate of 28 percent for the last six years, while the 28 percent GST was to be implemented on October 1.
Atishi said, an industry whose revenue is Rs 23,000 crore, you are giving a tax notice of Rs 1.5 lakh crore – this is to destroy the industry. This reflects the unsafe investment environment in the Indian startup ecosystem. Malhotra further said that some states like Delhi and Goa raised the issue of online gaming companies receiving GST notices for alleged tax evasion.
Deputy Chief Minister of Chhattisgarh and GST Council member TS Singhdev said that the retrospective levy of duty (tax demand notice) on these companies was discussed. Since DGGI is an independent institution, there cannot be any interference in it. The (GST Council) chairperson said that if needed, she would provide clarification to the DGGI.