The Indian Central government has clarified that the goods and services tax (GST) on online gaming companies is not retroactive, as certain states had raised concerns about this during a GST Council meeting. The Finance Minister, Nirmala Sitharaman, explained that the issue was not on the meeting’s agenda but was raised by some states afterward. The government stated that the 28 percent GST on certain online games involving betting was already in place earlier and was not being imposed retrospectively. This clarification comes in response to concerns about alleged GST evasion by online gaming companies, with notices totaling Rs 55,000 crore. Some believe these notices relate to the period before the implementation of new tax treatment on October 1, 2023, and fear it could impact the Indian startup sector and lead to job losses and reduced foreign investments.
Source: a2ztaxcorp.com
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