The All India Gaming Federation (AIGF), representing gaming companies like Nazara, Gamescraft, Jupi and Winzo, has said in its response that the GST Council's decision is unconstitutional and irrational.
New Delhi: The meeting of the GST Council, which affects the industry and business, was held on Tuesday. Many important decisions were taken in this meeting. In this decision, one of the biggest decisions has also been taken regarding online gaming. Now 28 percent GST has been imposed on this industry. After this decision, people associated with the online gaming industry have expressed their concern. The All India Gaming Federation (AIGF), representing gaming companies like Nazara, Gamescraft, Jupi and Winzo, has said in its response that the GST Council's decision is unconstitutional and irrational.
Meanwhile, Bharat-Pe co-founder Ashneer Grover, who recently entered the world of online gaming, has also openly expressed his displeasure over the government's decision. He has put his point on Twitter. Ashneer started online gaming under the name Cricpay.
He tweeted, "RIP - Real money gaming industry in India. If the government is thinking that people will put up ₹100 to play at ₹72 pot entry (28% gross GST); And if they win ₹54 (after platform fee) - they will have to pay 30% TDS on that - for which they will get a free swimming pool in their living room in the first monsoon - this is not happening!
He further wrote, “It was good to be a part of the fantasy gaming industry – which is now murdered. 10 billion dollars were wasted in this monsoon.
Along with this, he wrote, "The time has come for startup founders to enter politics and represent - or it is going to be the future of the industry one after the other."
RIP - Real money gaming industry in India. If the govt is thinking people will put in ₹100 to play on ₹72 pot entry (28% Gross GST); and if they win ₹54 (after platform fees)- they will pay 30% TDS on that - for which they will get free swimming pool in their living room come…
— Ashneer Grover (@Ashneer_Grover) July 11, 2023
Let us tell you that the Goods and Services Tax (GST) Council had on Tuesday decided to levy a tax at the rate of 28 percent on the total amount of betting in online gaming companies, casinos and horse races. Along with reducing the tax rate on food and drink sold in cinema halls, the definition of SUV for the purpose of cess has also been changed. The GST Council has also decided in this meeting to keep cancer treatment drug dinutuximab and drugs used in rare diseases out of the GST purview. Along with this, it has been decided to exempt satellite launch services provided by private companies from GST.
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