Goods and services tax collections from online gaming industry has risen by as much as 400% to an average of Rs 1,200 crore per month since the new tax rates has kicked in from October 1, 2023, said Sanjay Kumar Agarwal, Chairman, Central Board of Indirect Taxes and Customs. In an interview post the presentation of the Interim Budget, Agarwal said previously about Rs 220 crore per month of GST was collected from the sector.
“We have noticed a tremendous growth in GST from online gaming since October 1, 2023. This means that the online gaming companies are also doing well and there is robust growth in GST revenue as well,” he said.
Under the new GST regime, online gaming, casinos and horse racing attract a 28% GST on entry level bets.
Meanwhile, commenting on the reduction of customs duty on mobile phone components, the CBIC chief explained that it was not a part of the Budget exercise but was aimed at disputes relating to rate classification and rate rationalisation.
“There were certain disputes on the classification of mobile parts. Some parts like display assembly were charged at 10% but other parts were at 15%. To tide over these classification disputes and do the rate rationalisation, this notification was issued. Basically, it was to do away with the disputes on classification in the future,” the CBIC Chief said, adding that it has been very well received by the industry.
Two days before the Budget, the finance ministry had reduced the customs duty on various mobile phone components to 10% from the earlier rate of 15%. The move is also being seen as giving a fillip to domestic manufacturing.
Meanwhile, on the expectation of more customs duty rejigs, Agarwal underlined that this was an Interim Budget. “We keep on receiving proposals from line ministries on rejigging of customs duty notifications. They are conditional notifications with end date. There are a number of notifications in which end date is March 31, 2024, which has been extended to September 30, 2024 which can be reviewed in the full Budget in July
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