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Online gaming with the threat of increased spending
As per the Department of Revenue, the country’s “social ethos” has been a determining factor in choosing such goods under this category, reported The Indian Express. However, if this move does get finalised, it is likely to spark uproar among the online gaming platforms widely prevalent in India, with their opposition to the current 28% GST levied on them.
This comes after growing concerns within the Central and state governments over the financial commitment to these gaming platforms, considering the auto-pay features within the apps, often done without the user’s consent. Made in the backdrop of 50% US tariffs on India, this report also highlights the contrast of the tax cuts promised by PM Modi by Diwali 2025.
KYC checks, anti-money laundering laws
Indians are spending heavily on online gaming, according to Chief Economic Advisor V. Anantha Nageswaran. He revealed that with the ease of UPI payments, the payments for digital games have crossed Rs 10,000 crore every month. This translates to a massive Rs 1.2 trillion spending annually.
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Following these staggering numbers, the Centre is set to bring real-money gaming platforms under anti-money laundering laws, which would mean tighter rules like KYC checks and reporting of suspicious transactions, along with the 40% tax slab they are predicted to enter.