From April 1, online gaming is going to be expensive for you. Actually, Tax Deducted at Source or TDS on online gaming applications will now be applicable from 1 April 2023.
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From April 1, online gaming is going to be expensive for you. Actually, Tax Deducted at Source or TDS on online gaming applications will now be applicable from 1 April 2023. Earlier there was a provision to implement it from 1 July 2023. Earlier, the stakeholders of the online gaming industry had opposed the changes proposed by the Central Board of Direct Taxes (CBDT) and the Prime Minister’s Office (PMO) in TDS and Goods and Services Tax (GST) on the sector.
Gaming sector protested
On February 23, three online gaming bodies, including the E-Gaming Federation (EGF), the All India Gaming Federation (AIGF) and the Federation of Indian Fantasy Sports (FIFS), urged the CBDT to reconsider changes in the TDS regime. Wrote a letter regarding This is to be implemented from 1st April.
Earlier on February 9, a letter was written to the PMO. In this, he was appealed not to link online gaming with gambling, horse racing and casinos. These sectors attract the highest rate of GST of 28 per cent. It is also called sin tax.
At present, online gaming companies are required to charge TDS of 30 per cent on winnings exceeding Rs 10,000 per transaction. Where the limit of Rs 10,000 will remain from 1 April. At the same time, the important thing in this is that this rule will be applicable on the annual earnings of the user.
Why is the sector protesting?
Experts say that online gaming can become the next big new age export economy for India. But imposing GST of 28 per cent will badly affect the sector. He says that there are many early stage companies in the sector. However, increasing the tax rates may kill the ability of companies to continue. This will also affect the creators, whose earnings will also be affected.
Debate has been going on for a long time on what should be the tax rate on online gaming. Where the Group of Ministers headed by Meghalaya Chief Minister Conrad Sangma has already submitted its report to the GST Council. At the same time, the matter could not be discussed in the recent council meeting on 20 February.
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