Finance Minister, Mrs. Nirmala Sitharaman presented The Integrated GST Bill (Amendment), 2023 and the The Central GST Bill ( Amendment) , 2023. According to both the bills, registration is mandatory for all the offshore e-gaming companies operating in India. In case the companies fail to obey the GST registration and tax payment norms, their access will be blocked. The GST council has also approved the amendment.

The company needs money to run its operations smoothly, to do so it will deduct a specific amount from the balance on the basis of processing fees. The dedicated amount is known as GGR – Gross Gaming Revenue.

For example – If someone is playing an online game whose total entry fee is ₹100. 

Gross Gaming Revenue (GGR)will be – ₹20

Amount left after GGR is know as prize pool- ₹80 (₹100-₹20)

Before the new Bill came in existence the total percentage of tax on GGR was 18% 

So, the company has to pay 18% of ₹20 (GGR amount) which is ₹ 3.6 to the government

After the new Bill came into existence from now on the percentile of tax is 28% which will be implemented on the total amount.

So, now the company has to pay 28% of ₹100 (Total Amount) which is ₹28 to the government. 

The CGST amendment Bill defined online gaming as an electronic network. 

In online money gaming, players deposit the cash and expect to earn profit on the deposits. The gaming industry has divided gaming into two categories – Game of Skill and Game of Chance. These categories were only made by the gaming industry but never approved by the government. 

So, now with the amendment to GST law, the online gaming, casino, horse racing will come under the same slab and will be treated the same as actionable claims similar to betting and gambling. But all the games which don’t involve any kind of money activity will not be taxable. 

1.Online gaming companies will be having less revenue as processing fees which means less profit in the upcoming years. 

2.There will be a shortage in the amount of prize pool because of that users will be discouraged from playing games which will stop the growth of gaming industry in India. 

3.Pressure on the users who win money because the government imposes 30% tax on the amount. 

Many big players in online gaming industry like Mobile Premier League (MPL) , Rush gaming Universe has laid off it’s employees to cut down the cost burden due to the increase in GST percentage that is 28%

To reach every nook and corner of the country in a consumer-friendly manner, digital banking, digital payments and fintech innovations have grown at a rapid pace in the country. The government is continuously encouraging these sectors to ensure the benefits of digital banking. Further, Finance Minister announced that it is proposed to set up 75 Digital Banking Units (DBUs) in 75 districts of the country by Scheduled Commercial Banks.

In the year 2022, 100 per cent of 1.5 lakh post offices will come on the core banking system enabling financial inclusion and access to accounts through net banking, mobile banking, ATMs, and also providing online transfer of funds between post office accounts and bank accounts. The Finance Minister assured that the financial support for the digital payment ecosystem announced in the previous Budget will continue in 2022-23.

(News excerpts have been taken from https://pib.gov.in/)

Every year, the American business magazine releases a list of 100 powerful women of the world.  This year Forbes’ 18th annual list of power women includes 40 CEOs, 19 world leaders, an immunologist and, for the first time in more than a decade, a new number one is released.

The new number one for the first time in more than a decade is billionaire philanthropist MacKenzie Scott. She’s the third richest woman in the world, but it’s her unfettered access to that money and her determination to donate it in a way that is meaningful and revolutionary that puts her above the competition.

On number two is US vice president Kamala Harris, who moved up one spot from last year after she became the first female vice president and the highest-ranking female official in US history.

At number three, Christine Lagarde, the president of the European Central Bank, grabbed the position.

Besides Sitharaman, Indian women to feature on the list include HCL Corporation CEO Roshni Nadar Malhotra at 52; Biocon Executive Chairperson Kiran Mazumdar-Shaw at 72 and Nykaa founder Falguni Nayar on number 88.

Here are the top tens of ‘The World’s 100 Most Powerful Women’

1 Philanthropist MacKenzie Scott

2 US vice-president Kamala Harris

3 European Central Bank president Christine Lagarde

4 CEO of General Motors Mary Barra

5 Philanthropist Melinda French Gates

6 Fidelity Investments CEO Abigail Johnson

7 Santander Executive Chairman Ana Patricia Botín

8 President of European Commission Ursula von der Leyen

9 Taiwan President Tsai Ing-wen

10 Accenture CEO Julie Sweet