Current GST Situation

HotSports, a skill-based gaming platform, pays 18% GST on the fees they charge for participating in paid games. This fee is applied only when a user joins a paid contest. But, the GST council has proposed a change. They plan to apply a 28% GST on the entire amount users deposit into their accounts, starting from (date). To avoid taxing the same money multiple times, GST will now be charged on deposits rather than on each game entry.

Understanding the Current GST System

Under the current GST system, no GST is charged when a user deposits money into their account. For example, if you deposit Rs. 100 into your HotSports wallet, you actually get Rs. 100 to use for joining games.

Understanding the New GST System

Under the new GST system, when you deposit money into your HotSports account, a 28% GST will be applied. But don't worry—you'll still be able to use the full amount you deposit for playing games.

Here’s how it works:

  • If you deposit Rs. 100, a 28% GST will be calculated.
  • Your deposit amount will be Rs. 78.13, and Rs. 21.87 will be the GST.
  • HotSports will give you a GST cashback of Rs. 21.87.
  • You can use this cashback to join contests.
`

Let's break it down:

  • Deposit Amount (without GST): Rs. 78.13
  • GST on Deposit Amount (28%): Rs. 21.87
  • GST Cash Back from HotSports: Rs. 21.87
  • Total Balance Added to Your Account: Rs. 100

Even though the new GST rule applies, you still get the full benefit of your deposit. When you deposit Rs. 100, you’ll have Rs. 100 to use, thanks to the GST cash back from HotSports. This ensures you can play games with the entire amount you deposited.

This game involves an element of financial risk and may be addictive. Please play responsibly at your own risk. This game is applicable for people 18+ only.