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Is The Government’s Decision To Withhold 28% GST On Online Gaming Paving The Way For Illegal Betting?

Is the government’s decision to withhold 28% GST on online gaming paving the way for illegal betting platforms to operate in India?: The tax is the primary source of income from which the government earns and invests in the development of the country. Everything from roads to hospitals to schools to other critical infrastructure is kept running with the help of taxes.

But what if someone holds your collor and says you pay more than you earn? I know you’ll be irritated to your core. Despite having a low per-capita income, is the government going to any length to pull the gaming business down?

The answer lies with the common public, who faces all challenges on a daily basis as a result of hefty taxation. The same is true for the gaming sector; the government’s 28% GST imposition came as a complete surprise to the online gaming industry, where even commoners used to try their skill and earn some additional money in addition to their salary and some primary income sources .

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ALSO READ: GST Council’s 28% Tax On Online Gaming A ‘Death Knell’ For The Industry, Say Experts

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Now consider that if you put ₹100, a big chunk of your money i.e ₹28 rupees would be taken away. And that’s not all; you will also need to pay additional TDS based on your profit. This makes me think of the iconic Bollywood song “Aam Dani Atthani Kharcha Rupaya,” which expresses the sentiment that you spend more money than you make.

This ruling will undoubtedly discourage gamers from grinding several times on online gaming platforms for fear of losing a significant portion of their earnings. The online gaming platform may also witness a surprising drop in the number of individuals registering to play real-money games.

How Will Illegal Gambling Increase Following the Imposition of a 28% GST?

Despite great hardships, the desire to make money never fades. Skilled players from all around the world will now turn to illegal betting applications to test their abilities. As it will assist them in avoiding the taxes slab, it will build their confidence to play and earn more, the desire to earn money will drive them to significant illegal channels, eventually leading to the closure of all legal gaming activities. 

As our Finance Minister Nirmala Sitharaman stated, the government is willing to examine the decision, but waiting six months will merely add gasoline to the fire, and a lot can shift badly on legal online gambling platforms in six months.

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