Back GST on Online Gaming: Delta Corp share price tanks 20%, Nazara Tech share price drops 5% on 28% tax levy

What's New?

Shares of Delta Corp opened at their 10 per cent lower circuit of ₹222.15 while those of Nazara Technologies cracked over 14 per cent in early deals after the Goods and Services Tax (GST) Council on Tuesday (July 11) levied a 28 per cent uniform GST on online gaming, horse racing, and casinos on the full value of the bets.

This development indicates an increase from 1.8 rupees  per 100 rupees spent on a  game to 28 rupees on per 100.

Federation of Indian Chambers of Commerce & Industry and EY, online gaming companies

As of May 2022, the country accounted for 19.2 per cent of worldwide game downloads. The compound annual growth rate of the gaming industry is of approx 22 per cent. In 2021 India recorded about 390 million online gamers.