Last Update: May 04, 2023, 10:01 IST
MeiTY, the norms notified for the online gaming sector last month, explicitly prohibits betting and all such games involving betting. (Representational Image)
Finance Minister Nirmala Sitharaman on Tuesday said the GST Council is considering a taxation policy for online gaming and expressed confidence that the sector will attract investment once it is finalised.
Finance Minister Nirmala Sitharaman on Tuesday said the GST Council is considering a taxation policy for online gaming and expressed confidence that the sector will attract investment once it is finalised.
She was responding to a question from Krafton, a Korean gaming company, on India’s plans to attract foreign investment in gaming companies.
The minister said that various aspects of online gaming, including taxation and regulation, are under discussion at the ministerial level in the GST Council.
The Goods and Services Tax Council is chaired by Sitharaman and includes the finance ministers of the states.
Addressing the Indian diaspora in Seoul, Sitharaman said, ‘Once there is policy certainty, taxation becomes more… clear, it will attract investors.’
Online gaming saw a boom during the Covid lockdown, with the number of users increasing significantly in India. According to a report by KPMG, the online gaming sector will grow to Rs 29,000 crore by 2024-25 from Rs 13,600 crore in 2021.
The contentious issue of levying Goods and Services Tax (GST) on online games has been hanging fire for almost two years now with several states seeking to reduce the tax rate on online games that require skill. He is of the opinion that games of skill should not be equated with games of chance.
The final decision on taxation on online gaming is expected to be taken by the GST Council in its next meeting, which is likely to be held this month or in June.
Last month, the Ministry of Electronics and IT notified rules for the online gaming sector, which explicitly bans betting and all such games involving stakes.
The online gaming sector will follow a self-regulation model and initially notify three self-regulatory organizations (SROs) that will approve the games that can operate in the country as per the rules.
Responding to Crafton’s question, Sitharaman said on a lighter note that she likes to watch memes and animations from Japan and Korea.
He said, “I would love for them to come to India…the mastery with which the story is woven, there is so much positivity…that’s what we want for adults today.” PTI DP JD CS correspondent is in Seoul on the invitation of Asian Development Bank (ADB).
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(This story has not been edited by News18 staff and is published from a syndicated news agency feed)