“The gaming companies want to be regulated,” the minister said in a post on social media platform X, adding the country has 1,400 online gaming startups and 430 crore gaming apps were downloaded in 2023.
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In-game purchases and deposits contributed Rs 8,370 crore through UPI transaction volume, he said, and added that India’s online real money gaming segment enterprise has a valuation of Rs 1,60,000 crore.
The minister, citing estimated tax revenues, said the corporate tax and TDS contributions to the exchequer by the Real money Gaming sector between the years 2023-24 and 2027-28 will be Rs 6,500−6,800 crore.
He also mentioned that the estimated GST contribution to the exchequer by the real money gaming sector between the years 2023-24 and 2027-28 could be around Rs 76,000 crore.
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Also read | Layoffs and shutdowns as GST chars real-money gaming companies
In an earlier tweet, the minister said India has the world’s second-largest gaming community of about 42.5 crore gamers after the sector saw a rise of 28% since 2020. With a market size of Rs 16,428 crore in 2023, industry estimates suggest it will reach Rs 33,243 crore in a couple of years.
The sector directly and indirectly employs around one lakh individuals, with the prospect of expanding to 2, 50,000 job opportunities by 2025. “High time we realize the direct & indirect benefits the sector can get in investments, innovations and employment for the nation. If we don’t wake up soon, others will take the lead,” Kharge said.
In a recent letter to finance minister Nirmala Sitharaman, the minister pointed out that the emergence of online gaming as a sunrise sector has given rise to a remarkable surge in unicorns, especially in Karnataka.
In his letter, Kharge had urged the Centre to provide a favourable taxation regime to online games which are legitimate and are eventually regulated under the framework notified by the MeitY. The recent developments in GST regulations concerning online gaming, he had said, threatened to undermine Bengaluru’s position as India’s startup hub. The GST Council’s decision to raise the GST rate to 28% would have “significant ramifications for the sunrise industry in the state, hindering innovation, dampening FDI and stymying the growth of the industry.”
As Karnataka rolled out the 28% GST rate along with the Centre, the state GST authorities recently wrote to 161 online gaming firms asking them to collect GST at a 28% rate on full face-value bets of online real money games with effect from October 1, and file returns as per the revised rate.
The GST Council had, at its meeting on July 11, decided to tax online gaming, casinos and racecourse at 28% on the full-face value of bets. At a subsequent meeting on August 2, the council decided to complete the process of amendments at the earliest and give effect to them from October 1.
“The gaming companies want to be regulated,” the minister said in a post on social media platform X, adding the country has 1,400 online gaming startups and 430 crore gaming apps were downloaded in 2023.
Elevate Your Tech Prowess with High-Value Skill Courses
| Offering College | Course | Website |
|---|---|---|
| IIM Kozhikode | IIMK Advanced Data Science For Managers | Visit |
| Indian School of Business | ISB Professional Certificate in Product Management | Visit |
| IIM Lucknow | IIML Executive Programme in FinTech, Banking & Applied Risk Management | Visit |
In-game purchases and deposits contributed Rs 8,370 crore through UPI transaction volume, he said, and added that India’s online real money gaming segment enterprise has a valuation of Rs 1,60,000 crore.
The minister, citing estimated tax revenues, said the corporate tax and TDS contributions to the exchequer by the Real money Gaming sector between the years 2023-24 and 2027-28 will be Rs 6,500−6,800 crore.
He also mentioned that the estimated GST contribution to the exchequer by the real money gaming sector between the years 2023-24 and 2027-28 could be around Rs 76,000 crore.
Discover the stories of your interest
Also read | Layoffs and shutdowns as GST chars real-money gaming companies
In an earlier tweet, the minister said India has the world’s second-largest gaming community of about 42.5 crore gamers after the sector saw a rise of 28% since 2020. With a market size of Rs 16,428 crore in 2023, industry estimates suggest it will reach Rs 33,243 crore in a couple of years.
The sector directly and indirectly employs around one lakh individuals, with the prospect of expanding to 2, 50,000 job opportunities by 2025. “High time we realize the direct & indirect benefits the sector can get in investments, innovations and employment for the nation. If we don’t wake up soon, others will take the lead,” Kharge said.
In a recent letter to finance minister Nirmala Sitharaman, the minister pointed out that the emergence of online gaming as a sunrise sector has given rise to a remarkable surge in unicorns, especially in Karnataka.
In his letter, Kharge had urged the Centre to provide a favourable taxation regime to online games which are legitimate and are eventually regulated under the framework notified by the MeitY. The recent developments in GST regulations concerning online gaming, he had said, threatened to undermine Bengaluru’s position as India’s startup hub. The GST Council’s decision to raise the GST rate to 28% would have “significant ramifications for the sunrise industry in the state, hindering innovation, dampening FDI and stymying the growth of the industry.”
As Karnataka rolled out the 28% GST rate along with the Centre, the state GST authorities recently wrote to 161 online gaming firms asking them to collect GST at a 28% rate on full face-value bets of online real money games with effect from October 1, and file returns as per the revised rate.
The GST Council had, at its meeting on July 11, decided to tax online gaming, casinos and racecourse at 28% on the full-face value of bets. At a subsequent meeting on August 2, the council decided to complete the process of amendments at the earliest and give effect to them from October 1.