The Group of Ministers (GoM) levied a 28% GST on the full value of online gaming, horse racing and casinos with no distinction between games of skill and chance in the 50th GST Council Meeting/ Currently, online betting and gambling attract 28% GST, irrespective of whether it is a game of skill and chance. Other games attract an 18% levy on gross gaming revenue (GGR).
Industry experts were extremely unhappy with the GST Council's decision describing the move as a big setback for Indian players that will discourage players from playing, and thereby impact companies' cash flows. Shares of Nazara Technologies, Delta Corp, Zensar Technologies and OnMobile Global came under pressure in trade. ET NOW spoke to the management of Nazara Technologies who said that skill-based gaming contributed 5.2% to FY23 gaming revenues and the company will not see any major financial impact on 28% GST being levied.
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