The Goods and Services Tax (GST) Council, during its 54th meeting, revealed a dramatic rise in online gaming revenues following the imposition of a higher tax rate.
Finance Minister Nirmala Sitharaman announced on September 9, 2024, that revenue from online gaming has jumped by 412%, with collections soaring to ₹6,909 crore in just six months.
Casinos, too, saw a 30% rise in revenue during the same period.
This spike in revenue comes after the GST Council's decision in July 2023 to place both skill-based and chance-based online games in the 28% GST slab, which came into effect on October 1, 2023.
Previously, skill-based games were taxed at 18%. According to Sitharaman, this new tax regime has brought significant financial returns for the government.
Despite this, the gaming industry has struggled to maintain its earlier growth trajectory.