1.
How is GST calculated on deposit amount?
GST(Goods and Services Tax) is an indirect tax levied by the government on the supply of goods and services.
For online gaming, including online real money gaming, GST of 28% is levied on deposits made with the online gaming platforms, effective 1st October, 2023.
For example:
You deposit amount – Rs. 1,000
GST applicable – 28% (Rs. 280)
Amount Charged – Rs. 1,280
(This is applicable for all online gaming platforms)
2.
How is Tax deduction at source (TDS) Calculated?
TDS is to be charged if Net Winnings are greater than zero in that particular transfer.
TDS = X% * (Net Winnings) , if Net Winnings >0
TDS is deducted on each transfer which falls under the above statement but not on cumulative transfers.
For example:
If Net Winnings =12,000 in that particular transfer then TDS deducted would be 12000 * 30 %= Rs 3600
If Net Winnings =9,500 in that particular transfer then TDS deducted would be 9500 * 30 %= Rs 2850