Online gaming companies on Tuesday said that levying of 28 per cent GST will limit their ability to invest in new games, impact cash flows as well as business expansion.
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The Central Board of Direct Taxes (CBDT) on Monday clarified that any deposit in the form of bonus or incentives credited to an online gamer’s account will be considered net winnings, and subject to tax deduction, in case of withdrawal. However, platforms need not deduct TDS in case net winnings do not exceed Rs 100 a month and meet certain riders including if these are used