How will the 28% GST on Online Gaming affect the Players?
Here is a closer look at how India's newly implemented 28% GST (Goods and Service Tax) might affect iGaming website players.
On October 1st, 2023, the Goods and Service Tax (GST) Council in India introduced a new 28% taxation on the full face value of online gaming. In other words, all real money wagers placed at licensed iGaming sites (e.g., online sports betting sites and online casinos) will now levy a 28% tax, which is to be collected by each site's operator.
Let's dive straight in and closely examine how the 28% GST on online gambling activities will affect players the most.
How will India's new 28% GST impact players?
The new tax law was supposedly introduced as a way of streamlining India's tax collection system. A 30% tax, called Tax Deducted at Source (TDS), is also deducted from each player's winnings, meaning players and operators are now forced to give away more money than ever.
It has even led to some globally renowned iGaming companies exiting the iGaming industry in India altogether. In India, don't forget that there is no differentiation between games of skill and chance.
Some have pointed out that these steep new taxes will force even more players based in India to stop playing at these sites and switch to playing at offshore iGaming sites that are controlled by foreign operators, which are licensed abroad and fall outside of the Indian government's jurisdiction.
Although efforts will continue to be made by Indian authorities to block access to offshore iGaming sites that aim their business towards the Indian market, people living in India can easily switch on their VPN (Virtual Private Network) to gain access to these sites that do not impose such strict tax laws.
While some experts have predicted huge revenues of up to $5 billion over the coming years, others have said the implementation of the new 28% GST could spell the end of the regulated Indian iGaming industry. Only time will tell.
iGaming site operators will notice a huge dip in revenues, just like players will notice a huge dip in their winnings. Operators may also have to lay off some of their workforce and will find it harder to expand their business operations with this new taxation law.
What are the safest iGaming sites people in India will have access to in 2023?
There are a handful of perfectly secure iGaming sites that Indian players can sign up to in 2023. They are controlled by trustworthy operators with excellent reputations, and the websites are protected by Secure Socket Layer (SSL) encryption.
Here are ten of today's best online sports betting apps in India you can sign up to today. Most of these sites also have over 1,000 online casino games from 10 to 20 or more market-leading game development studios and software providers:
- 1xBET Best App for ODI Betting
- Parimatch Best Indian Betting App
- Betway App with High Cricket Odds
- 10CRIC Best Banking in Rupees App
- BetTilt Fast Registation Gambling App
- Megapari Rich Variety of Betting Markets
- Bet365 Most Known App for Betting
- 22Bet Best Betting Rates App
- Dafabet Betting exchange and Fantasy Cricket
- BlueChip.io Casino Betting with Cricket Touch
Other top sites Indians can sign up to today for free are 1Win, BC.Game, and Sportsbet.io, to name a few. If you want to read the latest reviews for any of these trusted Indian iGaming sites, one of the most trusted sites you can turn to is the official TheTopBookies.com website.
All of these online sports betting casino sites are fully licensed by one or more of the world's mid to top-tier licensing authorities. They all accept Indian rupees and welcome a decent amount of tried and tested Indian online payment solutions.
Some of the most secure, reliable, convenient, and user-friendly Indian deposit and withdrawal options currently accepted at most of these sites are Visa and Mastercard credit and debit cards, Paytm, AstroPay, Net Banking, UPI (Unified Payments Interface), and IMPS (Immediate Payment Service).
Some sites also now accept a handful of cryptocurrencies, such as Bitcoin, Bitcoin Cash, DogeCoin, Tether, and Ethereum, to name a few.
Final note
You won't notice any difference if you're new to iGaming sites and had never placed a sports bet or played online casino games before the 28% GST was implemented.
However, if you did place regular sports bets or play online casino games before the new law came into effect, you may notice the difference when you next win.
To avoid paying the steep tax rise, some players use their VPNs to access foreign-controlled sites that operate from outside of Indian jurisdiction. If you sign up to an iGaming site, make sure you are at least 18, and always make an effort to gamble responsibly.
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