GST Council slaps 40% tax on online real money gaming
Heads up, gamers: the GST Council just bumped up the tax on online real money gaming (RMG) from 28% to a hefty 40% at its 56th meeting on Wednesday.
RMG now sits in the same "sin goods" category as casinos and betting, which means it's getting taxed hard because of its potential social risks.
Operators can still claim input tax credit
Even with the higher tax, operators can still claim input tax credit—so they'll get some relief by offsetting part of what they pay in GST.
This follows the new online gaming law
This move follows the Promotion and Regulation of Online Gaming Act, passed last month.
The law bans online games that require you to put down real money but gives a thumbs-up to e-sports and free-to-play social games.
It also officially puts betting, gambling, horse racing, lottery, casinos, and online money gaming under taxable "goods."
Casual gamers get a break
With both a ban and higher taxes, playing or running real money games online just got much tougher—and pricier.
On the bright side, GST on household games dropped from 12% to 5%, so casual players get a bit of a break.