Industry body Internet and Mobile Association of India (IAMAI) has appealed to the Union government and the GST Council to maintain a status quo on the taxation of online games in the skill industry.
The current rate of GST in the online skill gaming industry is 18 per cent on the Gross Gaming Revenue (GGR) and 0 per cent on Contest Entry Fee (CEF). IAMAI said the current rate is fair and in line with international taxation standards for this sector.
The government is exploring the possibility of increasing the rate to 28 per cent but at its 47th meeting, the GST Council directed the group of ministers on casino, race course and online gaming to re-examine the issues in its terms of reference based on further inputs provided by the states.
The IAMAI on Monday said that several Supreme Court judgments have ruled that games of skills are legitimate trades and, therefore, protected under Article 19(1) (g) and Article 14 of the Constitution.