{"id":210532,"date":"2022-10-14T20:45:49","date_gmt":"2022-10-14T15:15:49","guid":{"rendered":"https:\/\/blog.forumias.com\/?p=210532"},"modified":"2022-10-14T20:45:49","modified_gmt":"2022-10-14T15:15:49","slug":"overtaxing-online-gaming-will-favour-grey-operators","status":"publish","type":"post","link":"https:\/\/forumias.com\/blog\/overtaxing-online-gaming-will-favour-grey-operators\/","title":{"rendered":"Overtaxing online gaming will favour grey operators"},"content":{"rendered":"\n

Source<\/strong>– The post is based on the article \u201cOvertaxing online gaming will favour grey operators\u201d <\/strong>published in the mint <\/strong>on 14th October 2022<\/strong>.<\/p>\n

Syllabus: <\/strong>GS3- Economy. GS2- Government policies<\/p>\n

Relevance<\/strong>– Online entertainment platforms<\/p>\n

News- The article explains the repercussions of the proposed move to increase GST in the online gaming sector to 28% of the entire prize pool.<\/strong><\/p>\n

Online gaming industry is generating $20 billion revenue and entertaining 200 million people. It is expected to reach $25 billion by 2030.<\/p>\n

What is the taxation structure for the online gaming industry?<\/strong><\/h5>\n

Online gaming industry currently pays 18% GST on its revenues or platform fee intake for providing their platform. The platform fee intake is about 15% of the overall prize pool in the contest.<\/p>\n

What will be the impacts of 28% GST on the entire prize pool?<\/strong><\/h5>\n

It will make it impossible to achieve PM Modi’s vision of India becoming a superpower.<\/p>\n

It will lead to an increase in the effective tax burden. The tax will be almost twice of operator revenue.<\/p>\n

It will give rise to grey market operators who will evade taxes. It is not possible for tax complaint operators to compete with them.<\/p>\n

The industry may not find these things sustainable. Closure of industry will lead to job losses and tax revenues losses for the government.<\/p>\n

Why is higher taxation being proposed?<\/strong><\/h5>\n

It flows from the argument that games of skill are required to pay GST on the entire pool instead of tax revenue.<\/p>\n

But the law states that the entire pool is taxable in the case of betting and gambling. Higher court judgments have established that games of skill do not constitute gambling.<\/p>\n

Some people in the government and civil society organisations take it as a social evil.<\/p>\n

What is the way forward?<\/strong><\/h5>\n

Shutting down local industry is not the solution.<\/p>\n

India can learn from western countries who are experienced in this field.<\/p>\n

An industry-friendly, progressive policy is needed which focuses on consumer protection.<\/p>\n","protected":false},"excerpt":{"rendered":"

Source– The post is based on the article \u201cOvertaxing online gaming will favour grey operators\u201d published in the mint on 14th October 2022. Syllabus: GS3- Economy. GS2- Government policies Relevance– Online entertainment platforms News- The article explains the repercussions of the proposed move to increase GST in the online gaming sector to 28% of the… Continue reading Overtaxing online gaming will favour grey operators<\/span><\/a><\/p>\n","protected":false},"author":10320,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"categories":[1230,9],"tags":[212,11126],"class_list":["post-210532","post","type-post","status-publish","format-standard","hentry","category-9-pm-daily-articles","category-public","tag-gs-paper-2","tag-the-mint","entry"],"jetpack_featured_media_url":"","views":{"total":0,"cached_at":"","cached_date":1704799163},"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/210532","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/users\/10320"}],"replies":[{"embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/comments?post=210532"}],"version-history":[{"count":0,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/posts\/210532\/revisions"}],"wp:attachment":[{"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/media?parent=210532"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/categories?post=210532"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forumias.com\/blog\/wp-json\/wp\/v2\/tags?post=210532"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}