Even as the online gambling business awaits a review of the 28% Goods and Services Tax (GST) imposed on the sector, the GST Council is unlikely to reduce the rate. According to reports, the government believes that the tax has been accepted by gamers, and collections are also performing well.  However, given industry concerns about previous GST notice payments, the matter may be reviewed.

"It seems doubtful that the 28% GST would be removed. "The industry and customers appear to have settled into it, as evidenced by the continued growth in tax collections from online gaming," said a source familiar with the situation.

However, the problem of GST notices for claims on previous payments may be reconsidered, considering that many businesses are concerned about paying them. "Many writ petitions have been filed on this matter, and the Supreme Court will now hear them.Companies are awaiting the judgment, according to a second source.  Meanwhile, firms have stated that if letters were sent in prior years, the money had already been paid to the players and they would be unable to pay it again.

The problems would be addressed by the GST Council when it meets following the General Elections and formation of the new Union cabinet.According to sources, the Council meeting might take place in late June or late July, following the release of the Union Budget.

The Council stated that it will evaluate the 28% GST on internet gambling, casinos, and horse racing after six months. The new tax regime was implemented for these industries on October 1, and many firms were concerned about the impact on gamers who may opt not to play due to the high tax burden.

Many industry participants and experts are also hopeful that an alternative to the high 28% tax may be developed to allow the business to grow even further. "Measures such as a temporary lockout for players who have spent long hours or a large sum of money on online gaming in one day can be considered," said Amrit Kiran Singh, President of the Skill Online Games Institute.

"India will need at least two, if not three or four, growth engines to propel us into the world's top economies in terms of per capita income," he added, noting that the IT industry had performed successfully for over three decades.  The Online Games business is the second area that, due to its sheer magnitude and Indians' innate talent in this IT-related subject, may help propel India to the top of the economic rankings, he remarked, while pushing for a reconsideration of the 28% GST.