Relief for Indian Gaming: 28% Tax Does Not Apply to Video Games or Esports

There has been a sigh of relief for those concerned about the impact of a 28% tax on real money games in India. It has now been clarified that this tax will only affect “real money” gaming such as casinos and horse racing, and not video games or esports.

According to a report by India’s Economic Times, there was genuine concern that the tax would also apply to the broader games industry. However, it seems that this concern may have been sensationalized by actors in the real money gaming industry, who often try to create a negative image of the entire online games sector.

Harish Chengaiah, Founder of Outlier Games, expressed his views on the situation, saying, “Today’s sensationalized statements on the 28% GST prove why the real money gaming and fantasy sports industry loves to maintain a negative image of ‘online games.’ They try to latch onto the video games industry and claim that it will be the ‘death blow’ to the Indian gaming industry.” Chengaiah also highlighted that there have been significant efforts within the Indian government to work with and clarify the stand of video games in gaming legislation.

Despite the clarification, the Indian gaming industry will still be subject to an 18% tax rate. This raises questions about the perception of video games and their association with real money gaming in the public’s mind, particularly in the mobile gaming sector where some games utilize real money gaming features like slots. However, these games would likely fall under the category of “non-video game” games that are affected by the tax rate.

In conclusion, while there may have been initial confusion and concerns within the industry, it appears that progress is being made in establishing a clearer distinction between video games and real money gaming within the Indian government itself.