On Tuesday, December 19, the National Academy of Customs & Indirect Taxes and Narcotics (NACIN) hosted “Training at Workplace” event. The event was held at its Vizag centre in hybrid mode, as other members could attend it online. Notably, the topic of discussion during the event was “Levy of GST on Online Games”.
Managing Director at Adipropcare, Deputy Director at DGGI, KV Mohan Rao Additional Asst. Director at NACIN, to name a few, were the ones who led the panel. The event came at a time when a lot of noise is circulating around the GST enactment on the sector. It is to be noted that the GST Council bought 28% reign into effect starting October 1, 2023.
Discussions related to the implementation of 28% tax on online gaming activities were made. Furthermore, how the taxation has hit the industry and other topics thereunder also made it to the team’s brainstorming. NACIN shared details of the event through their X account.
See the post here:
As part of “कार्यालय में प्रशिक्षण” (‘Training at Workplace’) Series, NACIN, Vizag held a session on the emerging topic: "GST on Online Gaming". It was in hybrid mode (physical at Vizag Office and online for the rest of the zone). There was a lively Q&A session at the end. pic.twitter.com/Teoxlx3sff
— NACIN (@nacincbic) December 20, 2023
On top of that, DGGI has also handed over notices worth over Rs 1 lakh crore to 71 firms in the online gaming sector. This has made the matters worse for the industry, as many firms have either laid-off employees or have winded up. Some firms have also shut their operations temporarily, hoping for the things to turnaround upon re-evaluation.
Prior to tax regime, the Indian gaming sector soared to newer heights. As per the latest EY report, the sector witnessed a 28% CAGR growth, capitalizing to Rs 16,428 crore in FY23. However, the ouster of big gaming firms in the industry will surely hamper the smooth sailing ride.
NACIN’s event concluded with several pointers like the impact, the future, and summary of the taxation policy. The summary stated that the previous growth at 28% CAGR has now been capped at 15% CAGR. This indicated that the gaming sector will reach Rs 33,243 crore by FY28.