The goods and service tax being levied on online gaming companies will not be applied retrospectively, Indian authorities clarified.
The Goods and Service Tax Council has introduced significant amendments to the rules governing the taxation of online gaming.
Under the new framework, the GST rate of 28 percent will apply to online gaming, regardless of whether these gaming activities are categorized as games of skill or chance.
According to the Times of India, after a council meeting on Saturday, Revenue Secretary Sanjay Malhotra, denied there would be any retrospective taxation.
So far 18 states and union territories in India have made the necessary amendments to their GST laws. The remaining 13 are in the process of incorporating the amendments.
On Saturday, Delhi’s finance minister, Atishi, warned that the recently proposed 28 percent Goods and Services Tax (GST) on online gaming firms could jeopardize the entire Indian startup sector, potentially leading to significant job losses and hampering foreign investments.
