Tax revenue on goods and services from online gaming has increased by 400% to an average of Rs 1,200 crore per month since the new regime came into effect on October 1, 2023, said Sanjay Kumar Agarwal, Chairman of the Central Board of Indirect Taxes. and customs.
In an interview with BT After presenting the interim budget, Agarwal earlier said that around Rs 220 crore per month of GST was collected from the sector.
“We have noticed considerable growth in GST on online gaming since October 1, 2023. This means that online gaming companies are also doing well and there is strong growth in GST revenue as well” , did he declare.
Under the new GST regime, online gaming, casinos and horse racing are subject to 28% GST on entry bets.
Furthermore, commenting on the reduction in customs duties on mobile phone components, the CBIC chief explained that it was not part of the budgetary exercise but was aimed at disputes related to classification and rationalization of tariffs.
“There has been some controversy over the classification of moving parts. Some parts, like the screen assembly, were charged at 10%, but other parts at 15%. To resolve these classification disputes and carry out rate rationalization, this notification has been issued. Basically, it was about ending conflicts over classification in the future,” the CBIC chief said, adding that the project was very well received by the industry.
Two days before the budget, the Finance Ministry had reduced customs duty on various mobile phone components to 10% from 15% earlier. The move is also seen as a boost to the domestic manufacturing industry.
Meanwhile, awaiting further changes in customs duties, Agarwal stressed that it was an interim budget. “We continue to receive proposals from the relevant ministries regarding the overhaul of customs duty notifications. These are conditional notifications with an end date. There are a number of notifications with an end date of March 31, 2024, which has been extended to September 30, 2024, and which can be reviewed in the full budget in July.
