Rethink retrospective GST on e-gaming India’s online gaming industry has witnessed exponential growth in the past decade, mainly driven by increased adoption of smartphones and internet.

Growing at a breakneck speed of 20%, the sector’s revenue generation potential has caught the attention of policymakers and regulators, paving the way for multiple regulatory frameworks.

The most recent regulatory impact being faced by e-gaming players is on the Goods & Services Tax (GST) front.

In its last meeting, the GST Council decided to categorise online gaming on a par with betting and gambling activities, subjecting it to a higher levy, typical for the sin category of goods and services.

Thus, all online gaming activities-be it gambling, online casinos, sports betting, or skill-based games such as online one-on-one chess or rummy-are to be treated the same and taxed at the same rate.

Prior to this GST Council decision, the industry had taken a view that some e-games were to be classified as games of skill, and only the platform fees charged would attract 18% GST.