Ashneer Grover, co-founder of BharatPe, criticized the government’s imposition of a 28% GST on the online gaming industry, stating that it would be detrimental to the fantasy gaming sector.
Grover who recently launched his own fantasy gaming app Crickpe put out a tweet that said, “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 the first monsoon – not happening!”
“It was good fun being part of the fantasy gaming industry – which stands murdered now. $10 Bn down the drain in this monsoon. Time for startups Founders to enter politics and be represented – or this is going to be spate industry after industry,” the tweet further said.
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
The 50th GST Council meeting on Tuesday agreed to tax online gaming at the rate of 28 percent on full face value amount at par with horse racing and casino.
The government’s decision to impose a 28 percent tax on online gaming is expected to have adverse effects on the industry, according to stakeholders. Experts argue that this move will inadvertently promote the rise of grey market operators and hinder the growth of the sector.
This move raises concerns about the potential negative consequences and calls into question the government’s approach to supporting and nurturing the online gaming industry.