Finance Minister Nirmala Sitharaman announced a 412% surge in tax revenues from online gaming, with collections rising to ₹6,909 crore within six months following the October 2023 notification. Speaking at a press conference after Monday's GST Council meeting, she emphasised that the significant revenue increase is attributed to the higher tax levy on online gaming, as outlined in a status report submitted to the fitment committee. Casinos also experienced a 30% increase in revenue.
"Revenue from online gaming has increased 412% reaching ₹6,909 crore in six months, while revenues from casinos have jumped by 30% to ₹214 crore,” Sitharaman said.
At the press conference, Sitharaman shared that during today's GST Council meeting, three status reports were submitted by the Group of Ministers. These reports covered casinos and online gaming, rate rationalisation, and real estate.
This surge follows the introduction of a 28% GST on both skill-based and chance-based online games, which took effect on October 1, 2023. India, home to 442 million gamers, is now the world's second-largest gaming market after China, with the industry set for significant growth. Previously, skill-based games were taxed at 18%, but the GST rate was increased to 28% after the 50th GST meeting in July 2023.
In addition to the 28% GST, gains from gaming tournaments, whether in cash or as prizes, are taxed at 30% under the Income from Other Sources category as per income tax law. According to a July Grant Thornton Bharat and E-Gaming Federation (EGF) study, the gaming industry, currently valued at $3.1 billion, is projected to grow to $8.92 billion within the next five years.
