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In this year-end retrospective, some key insights about theGSTpolicy can be summarized.The global gaming industry is valued at $300 billion, making it four times larger than the combined revenue of the movie and music industries.
Despite India’s standing as the second-largest gamingmarket, with over 500 million gamers, the industry captures only a fraction of its value.
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Like the IT revolution of the 1990s which transformed India’s global reputation, the gaming sector has the potential to do the same, provided it is nurtured with the right policies.One of the most persistent challenges in our industry has been the distinction between games of skill and games of chance.
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Under the leadership of Padma Shri Professor Bimal Roy, former chairman of the National Statistical Comision, a groundbreaking statistical framework has been developed.
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In October 2023, the GST Council increased the tax rate from 18% to 28%, levied not on platform earnings but on the deposit.
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Instead, it has created a double whammy: Indian players remain unprotected as they continue to play unabated on offshore illegal platforms, and domestic platforms face an unfair competitive disadvantage due to the high GST burden.
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