Indian government to block gaming apps evading 28% Gaming tax

The Indian government will target platforms using “No GST, No Tax” messages.

India.- The Indian government has warned that it will tack action against gaming sites that do not pay a proposed new tax rate. The Finance Ministry and Ministry of Electronics and Information Technology (MeiTy) have said they will block non-compliant platforms. The Directorate General of Goods and Services Tax Intelligence (DGGI) will compile a list of violators.

The Goods and Services Tax (GST) Council is expected to reach a final decision on the imposition of a 28 per cent GST levy on online gaming, casinos and horse racing on August 2. However, the government says that some apps are using a “No GST, No Tax” message to attract players.

There remain doubts about whether the tax will be levied on the entry-level or on each wager. While officials have said there will be no revision to the proposed rate, the GST will seek to resolve this aspect.

Various online gaming companies have expressed concerns over the potential ramifications of the tax, arguing that it could significantly impact volumes and the overall viability of gaming businesses.