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Title: Government has found another way to boost its Revenue from Tax Post by: elevates on July 12, 2023, 01:05:32 PM It seems the Indian government with the help of Babus has found an interesting way to boost their tax revenue. What they forgot is that they need to have some regulation before deciding to implement a tax on any upcoming technology. I came across this post from another forum, sharing it with here. Do share what you think about it. Go through it everything would be clear to you.
https://www.talkimg.com/images/2023/07/12/Zkn7D.png Title: Re: Government has found another way to boost its Revenue from Tax Post by: pakhitheboss on July 13, 2023, 04:11:23 AM This happened because the GST council has decided to cut GST rate on food served in cinema halls to 5%. Which according to me is a good initiative. Earlier, the GST rate was 18%, which was the reason why cinema hall tickets would cost less than the food being offered there. Whether the Cinema hall owner reduce the food price after this reduction
of GST rate is still debatable. Now, they need to balance the inflow of revenue therefore 28% GST rate has been imposed on online gaming, casinos and horse racing. I am okay with the tax being implemented on casino & horse racing. Why is the government targeting the online gaming industry is not clear to me. This means a lot of play to earn crypto projects will see reduction of Indian players in the coming months. Title: Re: Government has found another way to boost its Revenue from Tax Post by: elevates on July 13, 2023, 12:55:55 PM This happened because the GST council has decided to cut GST rate on food served in cinema halls to 5%. Which according to me is a good initiative. Earlier, the GST rate was 18%, which was the reason why cinema hall tickets would cost less than the food being offered there. Whether the Cinema hall owner reduce the food price after this reduction of GST rate is still debatable. Now, they need to balance the inflow of revenue therefore 28% GST rate has been imposed on online gaming, casinos and horse racing. I am okay with the tax being implemented on casino & horse racing. Why is the government targeting the online gaming industry is not clear to me. This means a lot of play to earn crypto projects will see reduction of Indian players in the coming months. The government of India has become delusional and nothing more. They feel every new tech means a new threat and that is why they are taking silly steps. What about regulation? They are implementing taxes but are least bothered about regulating these domains. I know they never consulted with those individuals who are into online gaming and have a mass following. Looking at the present scene I doubt they have a single idea about it. Title: Re: Government has found another way to boost its Revenue from Tax Post by: teosanru on July 13, 2023, 05:29:05 PM It seems the Indian government with the help of Babus has found an interesting way to boost their tax revenue. What they forgot is that they need to have some regulation before deciding to implement a tax on any upcoming technology. I came across this post from another forum, sharing it with here. Do share what you think about it. Go through it everything would be clear to you. This was sheer stupidity by the government to be honest. Online betting I do understand was a crazy thing going around but you should bring in proper laws to make sure online betting can be stopped. Coming to online gaming, slamming GST on it is sheer stupidity. I am surprised this decision comes after a few days since Dream11 became sponsor of BCCI, interesting to see what happens to their contract now.https://www.talkimg.com/images/2023/07/12/Zkn7D.png Title: Re: Government has found another way to boost its Revenue from Tax Post by: pawanjain on July 14, 2023, 03:31:42 PM Whether the Cinema hall owner reduce the food price after this reduction of GST rate is still debatable. . That is what I was wondering and I think they won't reduce the cost now since they know people are still willing to pay the cost for their food. Now that GST has decreased it directly means their profit margin would increase, provided, they don't change the cost of their food. This was sheer stupidity by the government to be honest. Online betting I do understand was a crazy thing going around but you should bring in proper laws to make sure online betting can be stopped. Coming to online gaming, slamming GST on it is sheer stupidity. I am surprised this decision comes after a few days since Dream11 became sponsor of BCCI, interesting to see what happens to their contract now. Hasn't BCCI already restricted their sponsors from putting crypto or online gaming related ads ? I remember reading such a news few months back. It's quite certain that no such ads will be displayed on cricket stadiums and jerseys now. Title: Re: Government has found another way to boost its Revenue from Tax Post by: avikz on July 14, 2023, 07:32:20 PM Well, that's how government works all around the world.
They impose less tax on things they like and highest tax on thing they don't like. They started with cryptos first and now they are after online gaming. The concept is simple, if you can't stop people from doing something by law, impose an unbelievable amount of tax which will make their venture unprofitable to curb the usage. it will have a long term impact. Honestly, after Indian government imposed 30% tax on crypto trading. I didn't covert a single rupee from bitcoin. So such measures are quite effective. Title: Re: Government has found another way to boost its Revenue from Tax Post by: pakhitheboss on July 18, 2023, 03:04:31 AM Honestly this is madness, I was going through the tax structure for this niche and found out the full details.
1. 28% GST. 2. 10% platform fee 3. 30% TDS. So, if someone wins INR 100, they would first pay INR 28 then INR 10 and then INR 30. Out of 100 rupees a user is left with 32 rupees. They as in the government has destroyed online gaming industry. Meanwhile the Blockchain gaming industry is going to $65 BN big by 2027. |
