Annabelle Stephenson
The online gaming industry in India is witnessing a shift as tax laws present a mix of challenges and opportunities for growth. Previously, a clear boundary differentiated skill-based games from those based on chance for tax purposes. However, recent tax adjustments have blurred this line, bringing uncertainty to the sector.
Skill-based games that were once exempt from the Public Gambling Act are now subjected to a 28% Goods and Services Tax (GST), aligning them with chance-based games like casinos and horse racing. This deviation from global tax norms, typically ranging from 15% to 20%, is impacting the industry adversely. Layoffs have been announced, with some companies exiting the market entirely and others ceasing operations.
The increased tax rates are pushing users towards offshore platforms beyond the GST regime, posing risks and stunting the growth potential of the domestic market. Despite promising investments from national and international sources, uncertainties in taxation, regulation, and macroeconomic challenges are hindering the industry’s progress.
The repercussions of these tax implications extend beyond the industry, affecting the projected creation of 250,000 jobs by 2025. Misclassifying skill-based games as chance-based will have long-term effects on the industry and its offerings.
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The source of the article is from the blog elblog.pl
