With the remarkable development of fantasy sports and the possible advantages to India’s digital economy, a new whitepaper prescribes giving tax sureness to the industry as well as guaranteeing an ideal tax rate as fundamental variables for drawing investments, FDI, and guaranteeing the development of tax revenue for the public authority.

The white paper from Tax India Online (TIOL) said fantasy sports have been toward the front of development and investment over the most recent couple of years. Regulators must assess the potential these sectors hold while guaranteeing their incomes are taxed in light of a valuation model that recognizes the game of skill and the game of chance.

It said India is the world’s biggest fantasy sports market with around 13 crore Indian clients, beating the US’s 50-year-old status as the world leader. India is additionally home to the world’s biggest fantasy sports administrator and above 150 administrators giving online fantasy sports. As indicated by the NITI Aayog draft rules on regulating the fantasy sports industry, with the critical development of this sector lately, it can keep drawing in foreign investment, increase innovation, and create work in India. With quickly flooding interest, a huge market of sports fans, and a supplementing pool of designing development ability in India is on the cusp of turning into a worldwide center point for this dawn industry.

As indicated by information from the TIOL report, the Fantasy Sports industry has produced ₹4700 crores in income in FY21 which is projected to develop to ₹9,500 crores by FY23. As far as investment potential, the Fantasy Sports industry has effectively drawn in ₹10,000 crores in FDI starting at 2021, with another ₹15,000 crores in FDI projected throughout the following three years. Fantasy Sports administrators have up to this point paid ₹1,500 crores in taxes for FY21 (GST + TDS + Corporate Tax), which is assessed to add up to ₹15,000 crores between FY20-FY24.

A PwC report released in 2019 assessed the GST part contributed in the following five years to be roughly ₹3,000 – 3,500 crore. As far as employment, the fantasy sports sector has effectively produced 3,000-3,400 positions straightforwardly and by implication and is projected to contribute 12,000 extra positions to India in the following 2-3 years.

According to a report gathered by the Internet and Mobile Association of India (IAMAI), the industry pays 18% GST on Platform Fee or GGR gathered (thought sum against the supply of services by the online fantasy sports operators which is the subject matter of levy of tax under the GST Law).

The report further notes that in different countries, the duty of VAT or GST is restricted to the Gross income (GGR) of the platform proprietors. GST on Gross Gaming Revenue would be reliable with worldwide practices. It is vital to take note of the different High Courts and the Hon’ble Supreme Court of India has declared Fantasy Sports as a game of skill and has agreed on assurance as a real business under Article 19(1)(g) of the constitution of India.

The industry expects that the current tax assessment from 18% on platform fees or GGR would proceed, which is a common practice universally also. The report prescribes that no progressions are made to the current tax collection system for fantasy sports and that the GoM uses this amazing chance to loan further clarity on the matter.

Credit: Mint