In the existing GST regime, skill-based gaming companies pay 18% GST on the platform fees. The platform fee is charged when a user joins a paid pot. No GST is charged on the deposit to the user. Thus, if the user wants to deposit Rs. 100, then by performing a transaction of Rs. 100, they can deposit Rs. 100 to their PlayerzPot deposit wallet.
The GST council has proposed to levy a 28% GST on the full face value of player deposits from (date). To avoid repeat taxation, the council recommends that GST be levied on deposits instead of every bet placed.
When you deposit Rs. 100 to play a game, a 28% GST will be applied to the deposit amount. However, you can still join pots with the entire amount you add. For instance, if you add Rs. 100, you will still be able to play for the full Rs. 100. So, even though GST is levied on the deposit, it does not affect your ability to participate in contests with the full deposited amount.
When you deposit Rs. 100 into your account, here's how the calculation works:
| Description | Amount (in Rs) |
|---|---|
| Deposit Amount (A) Excl Govt. Tax | 78.13 |
| GST on A (@28%) | 21.87 |
| GST Cashback (B) | 21.87 |
| Added to Current Balance (A + B) | 100 |
In addition to this, you'll also receive Rs. 21.87 from Winner Addaa as GST Cashback (B). This cashback can be used in full for joining contests.