Smt. Nirmala Sitharaman
Hon’ble Union Minister of Finance and Corporate Affairs
Ministry of Finance
Government of India
New Delhi 110 001
Hon’ble Finance Minister,
This is with respect to captioned subject matter.
As per recent media reports after the 47th GST Council meeting, the GoM has recommended a rate of 28% on the online gaming services. However, there is no clarity on the valuation for levying such rate of tax. At the outset, we are extremely thankful to the Hon’ble Finance Minister, the GST Council, and the Group of Ministers (GoM) on Casinos, Race Courses and Online Gaming to deliberate and re-examine the issue of rate and valuation of charging GST on the online gaming industry to keep the industry viable.
We understand that the next 48th GST Council meeting is expected to be held virtually on 17th December 2022, wherein one of the agenda for the GST council will be to decide on the above matter.
In this regard, representations received from the online gaming companies is attached herewith for your perusal with a plea to keep the tax base as gross gaming revenue (i.e. platform fees) in line with the international practice. A detailed representation with the basis for the valuation and impact on the industry as a whole is attached herewith for your records and reference.
We hope that you will consider the representation favourably. We would request for a meeting to explain our submission and discuss the related issues if so required.