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New Delhi. The government is going to make a big change in the GST system. There is a preparation to impose special 40% tax on sin and demerit goods. It can include paan masala, tobacco, cigarettes, luxury cars and online gaming. The Revenue Department has placed them in this category on the basis of the “social values” of the country.

Companies stirred, already 28% tax opposed
If this decision is implemented, fantasy sports and real-mani gaming platforms will suffer a huge shock. Already, these companies had objected to 28% GST. According to a news, the government is worried that users are spending a lot of money on these platforms and money is being deducted without consent during the game.

Government will benefit
The Central and State Governments will get economic benefits with the GST Council suggesting 40% rate. Even after 28% tax in October last year, the demand for this sector did not decrease, which shows that users do not stop playing games even after increasing tax.

412% jump in revenue due to last tax increase
According to Finance Minister Nirmala Sitharaman, revenue rose 412% in just 6 months after the implementation of 28% GST on online gaming (1,349 crore to 6,909 crore). The income from casinos also increased by 30%.

10,000 crores every month
Chief Economic Advisor V. Anant Nageswaran revealed that Indians spend an average of Rs 10,000 crore on online gaming every month. It sits 1.2 lakh crores annually. This data has been revealed by NPCI’s UPI transaction. Policy makers are worried that users are wasting more time and money on gaming.

Strict KYC rules may also apply
The government is considering bringing online gaming companies under the purview of anti -terrorism laws (PMLA). This will include provisions like KYC necessary and monitoring suspicious transactions.