The Minister of State for Electronics and Information Technology (MeitY) in India, Rajeev Chandrasekha, has revealed that some online gambling businesses in India are disguising themselves as gaming companies. They have found ways to deceive the system and operate openly.

Deceptive Practices in the Gaming Industry

Chandrasekha recently raised concerns about the presence of “bad actors” in India’s gaming industry. He highlighted that certain companies were operating as gambling establishments and had not fulfilled their tax obligations in the past. These firms posed as gaming platforms and did not pay the Goods and Services Tax (GST), even at the reduced rate of 18%.

States Voted for High GST

Notably, the Minister believes that the states voting for the 28% GST were influenced by these instances. These states are also prone to look at online gaming as another term for online gambling. Grouping online gaming and gambling together, it isn’t surprising that the Centre and States perceived these as social evil and imposed higher taxes to curb their growth.

The Need for Transparency and Regulatory Measures

Many people viewed the GST revision as a negative development due to deceptive practices, but Chandrasekhar provided reassurance during an Express Adda Live event. He spoke with Finance Minister Nirmala Sitharaman about reducing the GST on permissible online games. The creation of Gaming SRO will also aid in distinguishing legitimate games from those with gambling elements.