New Delhi: The Ministry of Electronics and IT, which oversees online gaming regulations, plans to request the GST Council to reconsider its decision to impose a 28% tax on online gaming. Minister of State Rajeev Chandrasekhar stated that the ministry is still in the early stages of developing a sustainable regulatory framework for online gaming and will approach the GST Council after the framework is in place. The GST Council had announced on July 11 that a 28% goods and service tax would be imposed on online gaming companies, horse racing, and casinos.
Chandrasekhar emphasized that the GST Council is a federal organization representing all state governments and has been working on the issue for the past three years. In contrast, the regulatory framework for online gaming only began in January 2023. He stated that while the government may disagree with the council’s findings, it is important to recognize the process of creating a framework for online gaming.
Chandrasekhar argued that it would be wise to proceed slowly with the regulation of online gaming despite the GST Council’s decision, which has caused dissatisfaction in the industry. He stressed the need to develop sustainable frameworks through detailed consultations with stakeholders rather than rushing into decisions based on industry or startup complaints. The government believes in taking a long-term approach and involving all relevant parties in the decision-making process.
The online gaming rules underwent a 3.5-month consultation process, during which the initial proposals were significantly modified based on stakeholder feedback. Chandrasekhar emphasized the importance of doing things correctly rather than hastily.
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