Atishi: GST on online gaming firms with retrospective effect
New Delhi, October 7
The Centre has clarified that the Goods and Services Tax (GST) on online gaming companies is not being levied retrospectively.
Finance Minister Nirmala Sitharman said the issue was not on the agenda of the GST Council meeting but was raised by some states such as Goa after the meeting was over.
“It was informed to certain members that this is not retrospective, and this was the law earlier. These liabilities were already existing because money online games are played with bets… they were already attracting — by way of betting or gambling — 28 per cent GST,” Revenue Secretary Sanjay Malhotra said in answer to a question at a press conference after the meeting of the GST Council.
Delhi Finance Minister Atishi had called it retrospective taxation as notices were for the period before the October 1, 2023 implementation date for new tax treatment for gaming platforms.
She also said before the meeting that the proposed 28 per cent GST on online gaming firms could jeopardise the entire Indian start-up sector, potentially leading to significant job losses and hit foreign investments.
A number of online gaming companies have been issued show-cause notices for allegedly evading GST with the cumulative amount estimated at Rs 55,000 crore.
