Whatever the clarification from the goods and services council on the latest taxation matter on the online gaming industry, the gaming industry is not going to remain the same. Industry needs new thought processes and ingenuity to meet the challenge of a higher taxation regime. Big companies and authorized platforms like skyexchange-id.info are planning to use generative technologies to design new games which do not involve wagering.
The games without wagering still have lower rates of taxes. The online sky exchange Idhave to address the issue with new games only. These new games have to be like a sports competition, where various teams take place and a winner takes the prize money. They also have to reduce their dependence on games where a gamer has to pay taxes on full face value of every bet. It is also not clear until now whether tax will be on the winning amount as well.
There are various team sports like tennis, badminton, table tennis, or games like chess where the skill of a gamer or player determines the outcome. Online skyexchange-id.info gaming companies are seeking the advice of several experts to design games which can bypass the higher taxation regime. They are seeking to create an environment where gamers and online platforms both can flourish.
Association of online gaming companies are seeking clarity on the GST council decision of 28 per cent tax on full face value of every bet. The cost will be enormous for a gamer. It will cut their betting amount and also will reduce the amount they earn after winning the bet. Because in addition to GST tax, a winner also has to give income tax on the winning amount.
The chances are that there will be little that can be expected from review of the council decision. So the survival and growth of sky exchange Id depends on ingenuity and innovative use of technology by online gaming companies.