In the 50th meeting of the Goods and Services Tax Council (GST) in New Delhi, they agreed to hike the GST to 28 per cent on online gaming, horse gaming and casinos. GST council has made it clear that there is no distinction between a 'game of skill and a game of chance' in online gaming. As we have certain laws in usage for 'Game of Skill', it has some exemptions, while 'Game of Chance' doesn’t.

28 per cent will be a major damper for the online gaming industry, the decision is a threat to the online gaming sector. Besides this, the Sitharaman head GST council has decided to decrease the GST on certain selective drugs and redefined sports utility vehicles. They brought the taxing system into four items – uncooked snack pellets, fish soluble paste, certain yarn and LD slag. GST was exempted from the cancer drug Dinutuximab (Quarziba).

However, Malay Shukla, secretary of the E-gaming Federation expressed his disappointment after the hike of GST to 28 per cent and he says that this raise will lead to a 1000 per cent increase and prove catastrophic for the industry. The gaming sector might challenge the GST council over making a game of chance and the game of skill equal. The gaming Sector is a $200 B market and nearly five times more than the movie entertainment sector. It is also the largest creator of jobs and start-ups. Now anyone can predict how the GST hike will create an impact on this sector.