The Goods and Services Tax (GST) Council in its meeting on August 2 is likely to discuss bringing the transactions, payments and winnings, made in virtual digital assets in online gaming under the 28 percent tax net that will be imposed on the full face value, according to a person familiar with the development.
The proposed amendment in the Central GST Act says that transactions in the form of winnings as well as deposits even in the form of virtual digital assets will come under the highest GST slab, the person told Moneycontrol.
“The value of supply of online gaming shall be the total amount paid to or deposited with the supplier by way of money or money’s worth, including virtual digital assets, by or on behalf of the player,” the amendment proposes.
The upcoming meeting, which will be held via video-conferencing, comes less than a month after the previous meeting. All online gaming platforms currently pay 18 percent GST on the platform fees, also known as the Gross Gaming Revenue (GGR), and not on the full value of the transaction, also known as the Contest Entry Amount (CEA).
Source: money control
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