---

New GST Tax Rates On RMG Brought In ₹6909 Cr, Says FM Nirmala Sitharaman

India’s Finance Minister Nirmala Sitharaman shared an interesting update at the 54th GST Council Meeting about the new tax rates on real-money gaming. The FinMin announced the Government had a windfall of ₹6909 Cr. Prior to the increase in the tax rates, the six-month collections between October 2023 and March 2024 were ₹1,349 Cr, which works out to a 412% jump. In the October-December 2023 quarter, the GST collections reached ₹3,470 Cr. This itself was a 5.7x increase from the amount of the previous quarter, a mere ₹605 Cr. The collections for the January-March quarter were ₹3,439 Cr. 

The increase in the tax regime has caused substantial changes in the real-money gaming industry in India. In the past few years, the industry has seen businesses close down and multiple layoffs. According to MoneyControl, Real-Money Gaming forms a massive percentage of India’s overall gaming industry, one that had about $3.1 billion in revenue in FY23. Estimates are that the industry will touch $7.5 Billion by FY28. 

About 28% GST Tax On Real Money Gaming apps

There has been some talk about government officials discussing some respite regarding GST deductions, but there’s no official confirmation on that count yet. The government imposed the 28% GST slab in August 2023 on the full face value of player deposits and agreed to review its decision later. This also raised questions about foreign investors exposed to the Indian real-money gaming industry.

The poker community in India has been looking forward to its mainstream acceptance for quite some time. While games like poker and rummy are gaining popularity, aspects like the uncertainty about the legality of real money gaming and the tax regime have hampered the sector’s progress for quite some time.

Being a proud Indian & pro-gamer who has represented the country in gaming, I was shocked & dismayed when the Hn’bl Revenue Secretary, while justifying 28% GST, said Gaming is against our social values. My open letter to him. @FinMinIndia @nsitharaman @Rajeev_GoI @Anurag_Office pic.twitter.com/HX4QTraiI6

— Christophercoke (@DeepPatel2506) July 19, 2023

In June 2024, the poker community did not receive relief from GST implementation, as the issue was not discussed during the Council’s meeting on Saturday (22nd June).

---

Also Read: Foreign Gaming Companies Under GST Scrutiny

---

When the GST implementation was announced in 2023, the industry was wary of the changes it would bring. Some thought it was the first step towards regularizing the business model, while others thought it would negatively impact gaming companies’ cash flows.

At that time, several gaming companies, including Pocket52, posted updates related to the GST implementation to their players and poker fans in general. 

Taxation and GST implementation have always been hot topics in many countries, most importantly in India. The GST Council Meetings routinely bring about positive changes in GST, including lowering taxes on medicines and food items. With the Government announcing the formidable tax collections, poker players can only take heart in the fact that the taxes collected are for the betterment of the nation.

We will keep you posted on all updates related to poker and GST. 

For more updates from the poker world, keep reading GutshotMagazine.com. Follow us on Facebook, Instagram, Twitter  and Telegram

---

---

More News

---