The online gaming landscape in India continues to grow. New platforms and exciting opportunities to win big amounts of money occasionally launch. However, many users of these apps don’t understand the tax implications on their winnings. While several gaming apps have built reputations for being user-friendly and offering great rewards, only a few are transparent about their GST and TDS policies.

In this blog, we'll explore the taxation policies of some of the most popular gaming apps in India and highlight why Khiladi Adda stands out as the only platform offering a full 100% GST-TDS refund directly to your wallet.

Tax on Online Gaming in India

The online gaming industry in India has seen massive growth in the last ten years and is expected to grow to $5 billion by 2025. The use of online gaming platforms, including casual or card gaming platforms, battlegrounds, sporting games, and quizzes, has resulted in offering real money to its players.

Last year, the three bodies of the online gaming industry, namely
the E-Gaming Federation (EGF),
the Federation of Indian Fantasy Sports (FIFS) and
the All India Gaming Federation (AIGF) approached the Central Board of Direct Taxes (CBDT) to reconsider TDS regime changes that have been effective from April 1, 2023.

Hence, this article will give you in-depth information about India's online gaming industry, its taxation policies, and any potential adjustments.

Understanding GST & TDS in Gaming

Before we dive into the specifics, it's important to understand how GST (Goods and Services Tax) and TDS (Tax Deducted at Source) affect your gaming earnings:

• GST is a consumption tax levied on the supply of goods and services. The GST Council amended the law in August 2023 to impose a 28% GST on the full value of amounts placed for all online games, regardless of whether they involve skill or chance. This change came into effect on October 1, 2023. In online gaming, GST is applied to the platform's service fee, which is deducted from the player's winnings.
  GST Deduction Explained:


• TDS is deducted from certain winnings on online gaming. Companies deduct a 30% tax on winnings exceeding ₹100. This tax is calculated on the net winnings, which is the difference between the amount withdrawn and deposited. For example, if you win a large sum, the platform may deduct 30% of your winnings as TDS before transferring the rest to your account.
  TDS Deduction Explained:

Example of Online Gaming Tax: Suppose you have paid Rs. 1,000 as an entry fee to enter an online game and won Rs. 40,000 from that. The gaming firm will deduct GST on Rs. 1000 with a 28% rate in such a case. TDS will also deduct on Rs. 39,000 (Rs. 40,000 - Rs. 1,000) at 30%. Therefore, you will have to pay a GST of Rs. 280 and TDS of Rs. 11,700, which will be deposited with the government, and the remaining balance will be credited into your account as your income from the win. But on Khiladi Adda, you get that GST of Rs. 280 and TDS of Rs. 11,700 also in your account. This is because of the 100% GST-TDS refund policy of Khiladi Adda.

These deductions can significantly reduce your take-home earnings, which is why understanding a platform's policy on these taxes is essential.

Why should you choose Khiladi Adda?

Among all these platforms, Khiladi Adda is unique in its approach to handling GST and TDS. Khiladi Adda is the only platform that offers a full 100% GST-TDS refund directly into your wallet. This means that every rupee you win is yours to keep, without any deductions. Here's why Khiladi Adda is the best choice for players who want to maximize their earnings:

Download App & Win up to ₹1 lakh daily: https://www.khiladiadda.com/

• 100% GST-TDS Refund: Unlike other platforms that deduct these taxes, Khiladi Adda refunds the full amount to your wallet.
• Low Platform Fees: With one of the lowest commission rates in the industry, Khiladi Adda ensures you get the most out of your winnings.
• Seamless Withdrawals: Enjoy quick and hassle-free withdrawals without worrying about tax deductions.

Taxation Policies of Popular Gaming Apps

1. MPL (Mobile Premier League) - MPL is one of India's largest and most popular gaming platforms. It offers a wide variety of games, including fantasy sports, casual games, and card games. However, MPL follows the standard taxation policy, where both GST and TDS are deducted from your winnings. Players often find a portion of their earnings reduced due to these taxes.
2. Rummy Circle - Rummy Circle is a leading online rummy platform in India. It has a strong player base and offers high-stakes tournaments. However, like other platforms, Rummy Circle deducts GST from entry fees and applies TDS to winnings over the ₹10,000 threshold.
3. Vision 11 - Vision 11 has gained traction as a competitive fantasy sports platform. While it offers attractive rewards, Vision11 deducts a 28% GST from deposits but credits it as discount points that can be used to play games on the app. This means players don’t get the real amount.
4. WinZo - WinZo is known for its diverse range of games and instant withdrawals. However, similar to the above apps, WinZo deducts GST and TDS from player winnings. The tax deductions can be large in amount, especially for players who frequently win large amounts.
5. Zupee - Zupee offers unique and engaging games, including trivia and skill-based challenges. While the platform is popular for its easy-to-play games, it does not exempt players from GST and TDS deductions. This reduces the overall amount players receive after a win.
6. My 11 Circle - My 11 Circle is a fantasy sports app that competes closely with Dream11. While it offers a seamless gaming experience, it follows the same taxation policy as other apps, with GST and TDS deductions impacting the final earnings.
7. Junglee Rummy - Junglee Rummy is another popular rummy app known for its secure gameplay and frequent tournaments. However, players should be aware that the platform deducts GST and TDS from their winnings, reducing the net amount they can withdraw.

Conclusion

When it comes to choosing a gaming platform in 2024, understanding the tax implications is crucial. While most popular apps like MPL, Vision 11, and Rummy Circle impose GST and TDS deductions, Khiladi Adda stands out by offering a 100% GST-TDS refund.

This unique feature ensures that players get the maximum value from their winnings, making Khiladi Adda the top choice for serious gamers in India. So, why settle for less? Play on Khiladi Adda and keep what you win!