The new GST E-gaming rule will come into effect in India from 1 October 2023, The finance ministry has announced.
According to the GST amendment law, E-gaming, Horse riding, and Casinos will come under taxation and the 28% GST will be applicable.
The finance ministry reported that E-gaming, Casino, and Horse riding will be treated as actionable claims like a lottery.
These taxation changes will also apply to foreign online gaming platforms and they have to pay the taxes to Indian government as per the new domestic law.
The purpose of GST taxation is to make online gaming safer and responsible and to increase revenue by regulating E-gaming.
There may be extra charges that have to be paid by gamers so the attraction toward online gaming will reduce and with this effect, some gaming companies may close down.