By Saptak Bardhan

The sector of online gaming better known as real-money gaming has been on a rollercoaster ride for the past year, ever since the tax revision of 28% GST on full value was announced by the 51st GST council meeting in August 2023. Additionally, the sector has also seen a massive dip in investments ever since the announcement of the tax rate revision was made.

The implementation of 28% GST on full value from October 1, 2023, was the start of a downhill journey for the online real- money gaming industry.

"The show cause notices sent by the Directorate General of Goods and Service Tax Intelligence (DGGI) can not be paid even if all the companies within the sector liquify themselves since the claim amount is 10-20% higher than the revenue the companies generated in their lifecycle. India levies the highest taxation in this space globally. While most companies are absorbing the tax right now as soon as they push it to the consumers, they will lose their consumers to the offshore betting platforms that continue to operate unregulated and illegally within the y," an industry expert told ediaInfo on the condition of anonymity.

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