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Gamers Set to Play Less as 28% GST Hits: State of India Gaming Report Reveals Industry Challenges A significant number of real money gamers in India are expressing their intent to reduce their gameplay in response to the governments decision to impose a hefty 28% Goods and Services Tax (GST) on gamers. The move is causing concern within the gaming community and may have broader implications for the industry. According to a recent report titled State of India Gaming, jointly published by Lu
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FAQ :
Real money gamers are reducing playtime primarily due to the government's decision to impose a 28% Goods and Services Tax (GST) on gamers, along with changes in tax deducted at source (TDS) regulations.
According to the 'State of India Gaming' report, 60% of respondents stated that the new GST rate and TDS changes will likely impact their gaming habits, leading them to play less.
The new GST rate for online gaming firms is 28% on their gross revenue, which is a significant increase from the previous 18%.
The report highlights that the GST demands from gaming businesses now surpass the sector's revenues. Notices for tax payments totaling $8.9 billion were served for FY18-FY23, while the total revenue for that period was $4 billion.
Yes, funding in the gaming sector has seen a sharp decline, plummeting by 75% year-on-year in 2023, which mirrors a global trend.
India is one of the world's largest gaming markets, with approximately 15.4 billion gaming downloads in FY23 and over 568 million gamers, representing more than 50% of internet users.
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