Ashneer Grover, co-founder of BharatPe, has criticized the government's decision to impose a 28% GST on online gaming. He has said that this will stifle the growth of the industry and make it difficult for startups to compete with foreign players.
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
AAP Delhi minister Atishi has assured Grover that she will urge the GST council to reconsider its decision. She has said that the Delhi government is clear that promoting start-ups is the only way to grow the economy.
The GST council is scheduled to meet again on August 2, 2023. It will be interesting to see if the council decides to reconsider its decision on the GST for online gaming.
Thanks for flagging the problems with this decision @Ashneer_Grover.
— Atishi (@AtishiAAP) August 2, 2023
Today the @GST_Council will be meeting again, and I will be asking them to reconsider the decision to impose 28% GST on Online Gaming.
Delhi Govt is clear that promoting start ups is the only way our economy… https://t.co/FlngZlfXdL
Here are some additional details from the article:
- The GST council is a body that decides on the rates of GST for different goods and services.
- The 28% GST on online gaming was imposed in July 2022.
- The industry body, The Federation of Indian Games Developers (FIGD), has also criticized the decision.
- They have said that the 28% GST will make it difficult for Indian gaming companies to compete with foreign players.
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