gaming industry – The News Desk

Government Decision: At Rs 1,200 crore, Krafton looks to double India investments

15Nov

By adminNo Comments

Business

Government Decision: At Rs 1,200 crore, Krafton looks to double India investments

NEW DELHI: Undeterred by the despondence in the gaming industry over the government's decision to increase GST to 28%, Korean major Krafton has decided to nearly double its India investments. The company is bringing in Rs 1,200 crore ($150 million) to infuse in gaming and AI-focused companies over the next two-to-three years.The company, which runs the popular game Battlegrounds Mobile India or BGMI (that made a re-entry in May this year after the government had banned it in July 2022), has already been making investments in the gaming and internet eco-system.These include Nodwin Gaming (esports), Loco (gaming live streaming), FRND (audio matchmaking), Nautilus Game ('real cricket' mobile franchise), Fantiger (NFT marketplace for artists), and Kuku FM (audio streaming)."Demand for gaming ...

Online money gaming firms face massive Rs 45,000 crore tax demand after 28% GST levy

Online money gaming firms, previously positioning themselves as offering skill-based games, face potential additional tax dues of around Rs 45,000 crore, according to an ET report. The Central Board of Indirect Taxes and Customs (CBIC) has evaluated unsettled GST liabilities for these firms since 2017.Officials in the ET report explained that these companies were taxed at 18% on gross gaming revenue due to their skill-based games, instead of the legally prescribed 28%, resulting in a Rs 45,000 crore tax shortfall. The differential tax treatment between skill and chance-based games has been done away with.The categorization of online gaming as either chance-based or skill-based has long fueled debate. Some online gaming companies have argued that their services pertained to skill-based act...

28% GST on e-gaming, casinos is here to stay

NEW DELHI: Ruling out any change in the proposed 28% GST on online gaming and casinos, government sources said it is prudent to stick to levying tax on the gross value as any other method comes with complications in businesses that lack transparency.The gaming industry has been seeking a review of last month's GST Council decision, arguing that the levy is too steep and will hurt business. Ahead of a meeting of the all powerful body comprising state and Union finance ministers on Wednesday, government sources told TOI that the decision by the Council was well thought and unanimous, with all states backing the proposal. "We discussed it for three years and then came to this decision. All ministers were completely on board on the proposed tax rate," said a source privy to the discussions in...