$3.5 billion Indian online gaming industry pushes for GST adjustment to boost growth

The Indian online gaming industry, valued at over $3.5 billion, is urging the government to reconsider its 28% Goods and Services Tax (GST) policy on Contest Entry Amount (CEA). The Skill Online Games Institute (SOGI) contends that this high tax rate is stifling domestic companies and hindering the industry’s potential for significant growth.

SOGI Founder President Amrit Kiran Singh emphasized that the shift from an 18% tax on gross gaming revenue to CEA last October not only burdens legitimate domestic platforms but also inadvertently supports illegal offshore betting and gambling activities. Singh called for a re-assessment of the GST policy to mitigate the unintended consequences of fostering illegal gambling and to promote the growth of the domestic online gaming industry.

Furthermore, Singh expressed concern that the high tax rate is driving Indian companies out of business, while foreign companies—particularly those from China, where no such tax exists—are gaining a competitive edge. He urged the government to conduct a comprehensive study before reviewing the GST rates on online gaming post-election.

SOGI is collaborating with the University of Oxford to study global regulations and tax structures for online gaming. The industry currently employs over 2 lakh people and has grown at a rapid pace of 35% CAGR in the last five years. With the right regulatory framework, SOGI believes the industry can grow five to sixfold in the near future.