Reeling under the impact of the 28% GST regime, the online gaming industry has found a glimmer of hope after the GST Council recommended the insertion of Section 11A in the CGST Act Insertion of Section 11A will give the power to the GST Council to overrule retrospective tax demands in cases where lower rates were initially paid due to industry-wide trade practices While there is no certainty that the gaming industry would find a relief, the sector, which has seen the top lines of major players fall as much as 60% after imposition of new GST regime, is cautiously optimistic

In February 2023, it was reported that over 10,000 e-gamers in India received income tax notices, bringing to the forefront the issue of the direct tax liability of online gaming earnings. As the landscape continues to evolve with new regulations and amendments, it is crucial to understand the implications and challenges faced by online gamers. Although current year data on the number of notices issued is unavailable, it is essential to follow up on the previous developments and address the ongoing concerns in this sector.

Online gaming is finding itself in troubled waters in India. On one hand, you have Google Play running a pilot programme for real-money gaming apps on its platform for a year. However, for now, it is only allowing daily fantasy sports games and rummy apps only. No provisions were made for other online games, be it chess, poker or something else altogether