THOSE WHO LIKE fantasy sports and other online gaming will now have to pay a hefty tax on their earnings.
The Goods and Services Tax (GST) Council has announced that there will be a 28% GST on full value on online gaming, horse racing, casinos and other such ventures.
The GST Council is going to make no distinction between 'game of skill' (fantasy sports is believed to be one) and 'game of chance' (betting on horse race, gambling, casions etc).
Previously, the applicable GST rate for this sector was just 5%.
While there were many indications that the GST rate would be raised, few had anticipated a 440% increase.
This move will significantly affect all fantasy sports sites like Dream11, My11Circle and others by putting a huge burden of taxation on the players. The move is being seen as an effort by the Union government to discourage such activities.
It remains to be seen to what extent these fantasy and gaming platforms will be affected going forward.