Online Gaming Sector to Attract Investment Once Taxation Policy Is Finalised: FM Sitharaman

The minister said the discussion is going on at the ministerial level in the GST Council into various aspects of online gaming.

Advertisement
By Press Trust of India | Updated: 3 May 2023 15:43 IST
Highlights
  • Goods and Services Tax Council is chaired by Sitharaman
  • Online gaming witnessed a spurt during the time of the Covid lockdown
  • The issue of GST on online games has been going on for nearly two years

Last month, the Ministry of Electronics and IT notified norms for the online gaming sector

Photo Credit: Unsplash

Finance Minister Nirmala Sitharaman on Tuesday said the GST Council is deliberating on taxation policy for online gaming and exuded confidence that the sector will attract investment once it is finalised.

She was responding to a question from a Korean gaming company Krafton on what are India's plans to attract foreign investment in gaming companies.

The minister said the discussion is going on at the ministerial level in the GST Council into various aspects of online gaming, including taxation and regulation.

The Goods and Services Tax Council is chaired by Sitharaman and comprises finance ministers of states.

Advertisement

"Once the policy certainty arrives, taxation becomes more ... clear, it will attract investors," Sitharaman said while addressing the Indian diaspora in Seoul.

Advertisement

Online gaming witnessed a spurt during the time of the Covid lockdown, with the number of users in India rising substantially. As per a KPMG report, the online gaming sector would grow to Rs 29,000 crore by 2024-25, from Rs 13,600 crore in 2021.

The vexed issue of levying Goods and Services Tax (GST) on online games has been hanging fire for nearly two years now with many states pitching for a lower tax rate on those online games which require skill. They are of the opinion that games of skill should not be treated at par with games of chance.

Advertisement

A final decision on the taxation on online gaming is expected to be taken by the GST Council in its next meeting, which is likely either this month or in June.

Last month, the Ministry of Electronics and IT notified norms for the online gaming sector, which categorically prohibits all such games involving betting and wagering.

Advertisement

The online gaming sector will follow a self-regulation model and will initially notify three self-regulatory organisations (SROs) that will approve the games that can operate in the country as per the rules.

Responding to Krafton's question, Sitharaman, in a lighter vein, said she likes to watch memes and also animes of Japan and Korea.

"I'd love them to come to India...The mastery with which the story weaving happens, there is so much positivity...That's what we want for adults today," she said. PTI DP JD CS The correspondent is in Seoul on invitation of Asian Development Bank (ADB).


The Vivo X90 Pro has finally made its debut in India, but is the company's flagship smartphone for 2023 equipped with enough upgrades over its predecessor? We discuss this and more on Orbital, the Gadgets 360 podcast. Orbital is available on Spotify, Gaana, JioSaavn, Google Podcasts, Apple Podcasts, Amazon Music and wherever you get your podcasts.

(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)

Affiliate links may be automatically generated - see our ethics statement for details.
 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Advertisement

Related Stories

Popular Mobile Brands
  1. Realme Narzo 90 Series With 7,000mAh Battery Launched in India: See Pricing
  2. Redmi K90 Ultra Could Bring a Massive Battery Upgrade
  3. Realme 16 Pro to Launch With Urban Wild Design in These Four Colourways
  4. Motorola Edge 70 First Impressions
  5. Redmi Note 15 5G Chipset Revealed Ahead of January 6 India Launch
  6. Honor Power 2 Key Features Leaked; Could Launch With a 10,080mAh Battery
  7. Dhruv64: India's First Homegrown 64-Bit Dual-Core Microprocessor Unveiled
  8. Oppo Find X9 Ultra Battery Capacity Teased By Company Executive
  9. Lenovo Idea Tab Plus Launched in India With 10,200mah Battery: Details
  10. Mrs Deshpande OTT Release Date: Madhuri Dixit's Starrere to Premiere on This Date
  1. Honor Power 2 Chipset, Display Specifications Tipped; Could Launch With 10,080mAh Battery
  2. Hollow Knight: Silksong's First Major Expansion, Sea of Sorrow, Announced; Launch Set for 2026
  3. Oppo Find X9 Ultra Battery Capacity Teased By Company Executive: Here's What We Know So Far
  4. Dhruv64: India’s First Homegrown 64-Bit Dual-Core Microprocessor Unveiled
  5. Disney CEO Says AI Deal With OpenAI Is Exclusive For Just One Year: Report
  6. Arasayyana Prema Prasanga Streaming Online: Know Where to Watch This Kannada Film
  7. Filmfare OTT Awards 2025 Winners: Black Warrant, Paatal Lok Season 2, Girls Will Be Girls, and More
  8. Thamma Now Streaming on Amazon Prime Video: Watch Ayushmann Khurrana and Rashmika Mandanna in This Horrer Comedy
  9. Realme 16 Pro Series Colourways Revealed; Company Announces Design Collaboration With Naoto Fukasawa
  10. Samsung Galaxy A07 5G Key Specifications Spotted in Geekbench Listing, Could Launch Soon
Gadgets 360 is available in
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2025. All rights reserved.