Monthly GST collection from online gaming companies has increased by more than 400 percent since October 1 to around Rs 1,200 crore. Giving this information on Friday, a senior official said that from October 1, 28 percent tax was imposed on online gaming platforms. The GST Council had made it clear in August last year that online gaming companies will have to pay 28 percent Goods and Services Tax (GST) on the entire face value of bets placed on their platforms. Along with this, it was made mandatory for foreign online gaming companies to register with the GST authority and a warning was given that failing to do so, their portals would be blocked.
Amendment in GST law came into effect from October 1, 2023
“After October 1, there has been an increase in GST revenue collection from online gaming companies,” the official told PTI. This sector was earlier paying an average monthly tax of Rs 225 crore, which has now increased to about Rs 1,200 crore. GST officials last year collected more than Rs 1.12 lakh crore during the financial years 2022-23 and 2023-24. About 71 show cause notices were sent to online gaming companies for alleged GST evasion. However, no foreign online gaming company has registered in the country after October 2023. “These foreign companies keep changing their VPNs and change their website addresses when they are blocked,” the official said. This is a challenge which the tax authorities are facing.