{"id":777000313,"date":"2022-11-22T13:49:51","date_gmt":"2022-11-22T16:49:51","guid":{"rendered":"https:\/\/focusgn.com\/asia-pacific\/?p=777000313"},"modified":"2026-04-23T02:45:43","modified_gmt":"2026-04-23T05:45:43","slug":"india-gom-to-propose-28-gst-for-online-gaming","status":"publish","type":"post","link":"https:\/\/focusgn.com\/asia-pacific\/india-gom-to-propose-28-gst-for-online-gaming","title":{"rendered":"India: GoM to propose 28% GST for online gaming"},"content":{"rendered":"\n<p>The Group of Ministers (GoM) report is expected to be submitted to the goods and services tax (GST) Council for consideration soon.<\/p>\n\n\n\n<!--more-->\n\n\n\n<p>India.- The GoM has decided to propose a&nbsp;<strong>goods and services tax (GST)<\/strong>&nbsp;of&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/focusgn.com\/asia-pacific\/india-tax-hike-proposed-for-online-gaming\" target=\"_blank\">28 per cent for online gaming<\/a>, replacing the current 18 per cent. There had been doubts about the distinction between games of skill and games of chance, but authorities have finally decided to tax both as demerit goods.<\/p>\n\n\n\n<p>Demerit good refers to goods or services that are regarded as unhealthy, demeaning, or otherwise inappropriate because their consumption is perceived to have negative consequences for the consumer. For casinos,&nbsp;the GoM had previously recommended taxing the full face value of chips\/coins purchased.<\/p>\n\n\n\n<p>GST would no longer be levied on the stake value of each betting round, including bets won in previous betting rounds. Additionally, the GoM has proposed a 28 per cent GST on casino entry fees including food and beverages.<\/p>\n\n\n\n<p>Some fear that an increase in taxes could encourage players to choose illegal gambling websites that do not deduct taxes and could harm the growing game industry. According to a report from the Confederation of Indian Chambers of Commerce and Industry (FICCI) and Ernst &amp; Young (EY),&nbsp;<a rel=\"noreferrer noopener\" href=\"https:\/\/focusgn.com\/asia-pacific\/indias-online-gaming-spend-increased-by-26-in-2021\" target=\"_blank\">the number of players paying for online gaming in India<\/a>&nbsp;grew&nbsp;<strong>17 per cent<\/strong>&nbsp;from 80 million in 2020 to 95 million in 2021.<\/p>\n\n\n\n<p>The number of online gaming players overall increased by 8 per cent from 360 million to 390 million. By 2023, the number is expected to exceed&nbsp;<strong>450 million<\/strong>. According to the report, the annual revenue of the online gaming segment in India grew by 28 per cent, from Rs79bn in 2020 to Rs101bn in 2021.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Group of Ministers (GoM) report is expected to be submitted to the goods and services tax (GST) Council for consideration soon.<\/p>\n","protected":false},"author":176,"featured_media":14026,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"India's Group of Ministers (GoM) proposes a significant increase in Goods and Services Tax (GST) to 28% for online gaming and casinos, replacing the current 18% rate. This new tax regime, treating both games of skill and chance as \"demerit goods,\" will apply to the full face value of casino chips and online gaming revenue. Industry stakeholders express concerns that this substantial tax hike could inadvertently fuel the grey market, despite the sector's robust growth in player numbers and revenue.","focusai_entities":"Group of Ministers (GoM), GST Council, Confederation of Indian Chambers of Commerce and Industry (FICCI), Ernst & Young (EY)","focusai_location":"India","focusai_target_profile":"ceo_executive (1.0), regulator (1.0), compliance_legal (1.0), operator_casino (1.0), affiliate_publisher (0.8), marketing_crm (0.9), payments_fraud_aml (0.8), investor_analyst (1.0), supplier_vendor (0.8), journalist_researcher (1.0)","focusai_suggestions":[{"label":"Impact on GGR\/NGR?","query":"What is the projected impact on regulated operators' GGR and NGR margins, and how might this influence their market presence or exit strategies?"},{"label":"Regulatory interpretation of skill?","query":"How will the unified 'demerit good' classification for games of skill and chance affect future regulatory interpretations and the legal landscape for iGaming in India?"}],"footnotes":""},"categories":[156,16333],"tags":[23911],"class_list":["post-777000313","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-regulation-news","category-south-east-asia-news","tag-gambling-regulation"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777000313","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777000313"}],"version-history":[{"count":3,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777000313\/revisions"}],"predecessor-version":[{"id":777000324,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777000313\/revisions\/777000324"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/14026"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777000313"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777000313"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777000313"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}