Recently, several online gaming companies were sent show-cause notices on the grounds that they had "evaded" GST worth Rs 1.12 lakh crore in 2022-23 and the first seven months of 2023-24. Retrospective taxation is another threat that could finish off the online gaming industry if implemented.
As per a report by The Quint, the industry is looking at staggering retrospect tax demands after complying with the new GST law. Fantasy gaming like Dream11, casual games like Candy Crush, card games such as Rummy Circle, and Esports are covered under the ambit of the new law.
A 28% tax on online gaming companies has been proposed. Revenue Secretary Sanjay Malhotra has been quoted as saying that GST collection from online gaming in the previous financial quarter surged by 475%.
In recent days, reports indicate that the Centre is likely to "soften its stance on retrospective GST demand notices concerning the period from July 2017 to 2023".
Analysts believe that economic terrorism won't do any good. Retrospective taxation is the worst form of maximizing revenue.
