The recently proposed 28 per cent goods and services tax (GST) on online games involving real money will not impact the taxation on e-sports, such as FIFA and League of Legends, or leading titles on PlayStation, Xbox, and Nintendo platforms.
The higher tax rate will be solely levied on pay-to-win games, such as fantasy sports, rummy, and poker, which have the scope of monetary gains.
"E-sports and video games, intended purely for entertainment and not involving betting, gambling or any money transactions, will continue to be taxed as they have been," according to a government official.
Currently, e-sports and games meant for entertainment attract 18 per cent GST. Prominent players like Microsoft and Activision Blizzard offer such games without any betting component.
Rules in the works for games involving monetary gains will distinguish such games or sports and those intended solely for entertainment. "The detailed framework will specify terms like 'online money gaming' and what all will fall under this category," a senior official familiar with the matter said.
This story is from the August 08, 2023 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the August 08, 2023 edition of Business Standard.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Sign In
How AI is Disrupting the Literary World
This summer, Ayad Akhtar was struggling with the final scene of McNeal, his knotty and disorienting play about a Nobel Prize-winning author who uses artificial intelligence to write a novel.
Dark store surge set to spur realty demand
Quick commerce (qcom) firms are poised to impact India's real estate landscape as they expand their dark store networks to meet the growing demand.
The Bibek I knew
It was the early 2000s when I was setting up an economics research practice.
Saudi revives India investment plans amid shrinking mkt share
Move aimed at ensuring a major captive market for its crude oil, even as Indian refiners mull reducing the share of expensive Saudi grades sourced under term contracts
Tech, threats, territories - navigating industry growth in the new world order
As I step into my role as president of Nasscom, I view the next five years as a critical period, shaped by the intersection of three forces: Technology, threats, and territories.
STARS AND STYLE
The two biggest ever stars of Indian movies have followed contrasting styles as brands
Overhaul of HVLDE norms on cards
Market regulator Sebi has proposed an overhaul to the framework governing high-value listed debt entities (HVLDEs) in a bid to reduce the compliance burden.
Sebi moots changes to ERP framework
Revision to allow ERPs to rate unlisted securities
Testing the Midwestern assumption
Every now and then, a moment comes when the assumptions underlying a nation's politics are completely overturned.
From alienation to acceptance
A third of the way into Matthew Rankin's Universal Language, one stops wanting to know the film's secret and begins swimming in its mystery instead.
