New GST Rule on Online Gaming
At the 50th GST Council meeting on July 11, 2023, an important decision was made that will affect online games, casinos, and horse racing. According to the new guideline, there is now a 28% GST rate for online games, casinos, and horse racing based on the full price. This new GST rule on online gaming became effective on October 1, 2023.
The 28% GST on online gaming is a tax rate that will be applied to the total money collected from players who participate in various online gaming activities like poker, rummy, fantasy sports, and esports, no matter if they are games that require skill or are games of chance.
Are you curious about online gaming GST? Do you want to know about the rules for GST in gaming or the latest updates on GST for online games? Don't worry; we have all the answers you need!
The Impact of the New GST Rule on Online Gaming
When someone deposits Rs. 100 into a real money gaming app, Rs. 28 is immediately set aside for GST, leaving the player with Rs. 72 for gaming. Additionally, after this, there is a platform fee that gets deducted, which can be between 10% to 20%.
BUT BUT BUT...
?We have exciting news for all the poker players out there that will make you choose BLITZPOKER without a second thought?
? Pay 0 GST on Deposits on BLITZPOKER! ?
Yes, you read that right!
Different from others, BLITZPOKER has decided to take a unique stance. We've got the GST covered, so you don't have to worry about it.
According to government regulations, a 30% Tax Deducted at Source (TDS) is withheld from the profits. For more details, please refer to this page.
How Will the New 28% GST Rule on Online Gaming Affect Online Gaming in India?
The introduction of the 28% GST on online gaming is going to bring significant changes to online gaming in India. This tax change will notably affect both the online gaming industry and its players.
First and foremost, the financial impact on players cannot be ignored. Under this new system, players will need to pay a 28% GST on the entire amount they put into the game, no matter the game's outcome. This is a big increase in taxes for players, more than three times what it was before.
Moreover, the 28% GST will have a big effect on the profit and sustainability of online gaming platforms. These platforms will not only have to follow the new rules but also handle the added tax costs, which they might pass on to their users. This could reduce their profits and cash flow, which might affect their ability to invest in things like research and development, technology, marketing, and better customer service.
Considering these changes, BLITZPOKER's decision to cover the GST cost for players is a significant cost-saving advantage. While the new GST structure introduces challenges for the industry, BLITZPOKER remains focused on its players, providing a more affordable gaming experience.
