New Delhi: The government is establishing an inter-departmental panel to ensure regulatory compliance by online gaming platforms. The committee will include officials from the Enforcement Directorate (ED), Reserve Bank of India (RBI), and tax and consumer affairs departments to oversee the rapidly expanding online gaming industry.
The Directorate General of GST Intelligence (DGGI) has already initiated action against 118 domestic gaming platforms, issuing show-cause notices to 34 entities over unpaid taxes totaling ₹1.10 lakh crore. Several of these companies have approached the Supreme Court, which is currently hearing the case.
Amendments to the Central Goods and Services Tax (CGST) Act and the Integrated Goods and Services Tax (IGST) Act, effective from October 1, 2023, provide clarity on the taxation of casinos, horse racing, and online gaming. These updates aim to level the playing field between domestic and foreign online gaming operators. Foreign-based gaming platforms offering services in India must now register under GST law, with punitive measures such as website blocking for non-compliance.
The online gaming industry, which grew at a 28% compound annual growth rate (CAGR) post-COVID, reached ₹16,428 crore in FY 23-24, highlighting the need for stricter oversight.
