Gaming Industry Pushes for Fair Taxation: Calls for GST Revamp

Skill Online Games Institute (SOGI), backed by gaming firms, urges India to levy 28% GST on platform fees rather than deposits, aiming to prevent offshore tax advantages. They highlight the rise in offshore gaming and call for government collaboration to mitigate industry negatives such as addiction.

The Skill Online Games Institute (SOGI), backed by real money gaming firms, is urging the Indian government to levy 28% GST on platform fees instead of deposits. Their aim is to prevent offshore platforms from capitalizing on tax disparities, an issue set for discussion at the GST Council meeting in Jaisalmer, Rajasthan.

Amrit Kiran Singh, SOGI President, emphasizes the nascent stage of the online gaming industry in India, advocating collaboration between the government and industry to maximize its economic potential. Singh points to the 28% GST on gaming deposits introduced this October as a factor pushing Indian players to offshore platforms, raising national security and tax revenue concerns.

Despite measures like media advisories and attempts to register offshore platforms, Indian players remain attracted to illegal sites offering GST-free options. Singh suggests adopting a Gross Gaming Revenue tax model, common in successful online gaming nations, to ensure industry growth and compliance.

(With inputs from agencies.)