The GoM, in its first report, has recommended that online gaming activities should be taxed at 28% on the full value of consideration, by whatever name such consideration may be called including contest entry fee, paid by the player for participation in such games without making a distinction such as games of skill or chance. Since GST is levied on online skill-based gaming at 18% currently on the platform fee (about 20% of the contest entry fee), the tax incidence on this gaming industry will rise.
Source: a2ztaxcorp.com
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