Online gaming companies to lessen spend during ICC Men’s Cricket World Cup amidst 28 percent GST

The number of employees in the 'Online Gaming' industry has grown at a CAGR of 97.5% from 2018 to 2023 in India.

On July 11, the GST Council decided to impose 28 percent tax for online gaming. On August 2, Finance Minister Nirmala Sitharaman clarified that the 28 percent tax will take place from October 1.

Gaming influencers – How would 28 percent GST affect marketing spends on influencers?

As per Rohit Agarwal,founder and chief executive officer, AlphaZegus, in the influencer space, the imposition of 28 percent GST is less of a concern than recession, which is a greater concern. (Representative Image: AronPW via Unsplash)

Starting October 1, a 28 percent GST will be imposed on the face value of both games of skill and games of chance. Storyboard18 connected with an influencer and industry experts to understand the impact of the levy on brands’ marketing spends on influencers and therefore, the influencer economy.

Esports celebrities are going to be superstars of the future: KRAFTON’s Srinjoy Das

This move comes after Free Fire, a rival battle royale game from Singapore tech giant Sea's gaming arm Garena, also made a comeback to the country after being suspended for about one and a half years.

KRAFTON is addressing BGMI as a cultural session for the first time, says Srinjoy Das, Associate Director, Marketing, KRAFTON India.

GST Council’s meeting today: What’s at stake for online gaming industry

Structural shifts toward a higher propensity to pay for in-game features and the burgeoning popularity of casual and midcore games are poised to play pivotal roles in shaping the landscape by FY28. (Representative Image via Unsplash)

The gaming industry is hopeful that the government will consider their concerns and arrive at a fair and sustainable decision for the valuation of GST on online gaming platforms.

MIB will now oversee online gaming services and advertisements

The case highlighted the actions of certain operators of Facebook pages and online platforms accused of sharing doctored videos of Dr. Shetty, falsely attributing unverified health advice and product endorsements to him.

The central government brings content providers, including online gaming services and advertisements, under Ministry of Information and Broadcasting.