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Navigating through GST changes together
Dear poker enthusiasts, we are committed to adapt and innovate to ensure the poker community continues to flourish in the face of adversity. We understand that the current changes might be overwhelming. This note will help you navigate the latest changes on the platform.
With these changes, we’re minimizing impact on the players, ensuring best offerings and experience, and securing a stable long-term game without any hiccups or surprises in the future.
Let’s understand the platform changes and how to navigate them to make money in the game while lowering the GST impact on you and increasing your winnings.
Understanding the direct impact on the platform?
In the past, platforms were subject to GST @18% on the ‘Platform Fee/Commission’. However, the recent amendments in GST law have seen this rate change to GST @ 28% on ‘Deposits made by the Player’, representing a substantial and impactful shift in the financial dynamics of the industry. This could be understood from below example:
These changes have been brought for all ‘online money gaming’ players and platforms and not only for the Pocket52 platform or its players.
|Particulars||Amount||GST till 30.09.2023||GST on or after 01.10.2023|
|Add Cash||110||No GST||24.06 (GST rate is 28% on Add Cash)|
|Tournament Buy-in Value||110||Not Subject to GST||Not Subject to GSTNo GST if you play from winnings without withdrawing|
|Platform Margin||10||1.52 (GST Rate was 18% on Platform Commission)||No GST|
It is evident that, despite gross platform margin remaining the same (before or after the GST amendments as explained above), the net platform margins have significantly eroded as GST cost has increased for each Rs. 110 Deposit by Rs. 22.54 (Rs. 24.06 – Rs. 1.52) and currently being borne by the platform. You will appreciate that this increase of INR 22.54 is more than net platform margin, which is Rs. 10 only.
The GST amount increases when players withdraw and redeposit their winnings. At Pocket52, we aim to create a sustainable approach akin to bankroll management. Our changes are geared towards enhancing your bankroll practices in a positive manner.
Introduction of TDC :
In recent months, our tournament guarantees have steadily expanded. Beginning on October 1st 2023, we had implemented a new policy: any overlay in a tournament will be distributed to the winners in the form of Tournament Deposit Credits (TDC). Players can choose to withdraw their winnings and utilize TDC as part of their bankroll for future tournaments, eliminating the need for additional deposits post-winnings. This not only assists our platform in mitigating the impact of GST on add cash but also empowers tournament players with the flexibility to employ their TDC in any tournament of their preference, unrestricted by limitations. If there are no overlays in the tournament, all winnings are real and withdrawable.
Introduction of DC :
For each add cash transaction, we are now offering Deposit Credits (DC). When a player deposits 100 Rs, they receive an equivalent buy-in worth Rs 100 despite the increased GST cost, which can be used in both cash games and tournaments.
There are no usage restrictions for this amount, and any winnings generated after applying DC can be withdrawn, while the DCs themselves are non-withdrawable; they enable players to avail discounted buy-in.
There exists a monthly limit for Deposit Credits (DC) awarded upon adding cash, contingent on your royalty level. You can view this limit within the app for reference.
Other benefits on Pocket52
- Royalty Reward Program:
- Up to 40% DC (previously known rakeback) based on your loyalty level.
- Tournament players are now part of the Royalty Program and can level up by participating in more tournaments, earning them up to 40% DC depending on their level.
- Withdrawal Charges:
- No hidden fees for withdrawals.
- Limited to one withdrawal per day.
- Deposit Charges:
- No deposit charges on Pocket52.
- Payment gateway fees are on us.
With each addition of funds, you will receive an official invoice from Pocket52 for your records, which includes the 28% GST paid to the government. This invoice is provided solely for your reference, and no action is required from the players.
When you make a deposit of Rs 100 on the platform, the TDS calculation for your winnings will be based on the full deposit amount of Rs 100, and not on the reduced amount of Rs 78.12 (Rs 100 – GST of 21.88).