Skill gaming industry is concerned about additional cost burden as well tight timeline for the implementation of the new goods and services tax (GST) rate at 28 percent on deposits.
GST currently is levied at 18 percent on platform fees also known as gross gaming revenue of skill gaming companies.
Firms say that there will be additional cost for compliance, legal as well as communication due to implementation of the changes suggested by the GST Council at its 51st meeting.
“We will need legal advice and external consultants or tax experts to understand the nuances of the new regulations. The changes will also have to be communicated to players (users), which will require devising communication strategies and channels. This may entail additional costs. And ensuring compliance with the new GST regulations will require us to invest in updating billing and payment systems, integrating with the GSTN, and implementing new accounting and reporting procedures. This will lead to additional cost burden,” said an official of online gaming firm KickRummy.
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