More than 130 online gaming businesses and trade groups have written to the Centre to ask them to reconsider the 28% GST on the full face value of online gaming. According to a report on Saturday, the businesses have signed an open letter and handed it to the Centre pleading for a “viable and progressive GST regime.”
According to The Economics Times, the businesses have claimed that the idea to impose a 28% GST on the full deposit amount will stunt the expansion of the burgeoning sector.
Companies including Nazara Technologies, Gameskraft Technologies, WinZO Games, Mobile Premier League (MPL) and it’s game production division Mayhem Studios, and others signed the petition regarding online gaming.
The letter was also signed by organizations representing the gaming industry, such as the All India Gaming Federation (AIGF), E-Gaming Federation (EGF), Federation of Indian Fantasy Sports (FIFS), and All India Game Developer’s Forum (AIGDF).
While the EGF represents businesses like Games 24×7 and Junglee Games, the AIGF represents organizations like MPL, Zupee, and Paytm First Games. Platforms like Dream11 and Fantasy Akhada support FIFS.
On July 11, the GST Council levied a 28% tax on casinos, horse racing, and online gaming. After the GST law is changed, the 28% GST duty on online gaming would go into effect, according to Finance Minister Nirmala Sitharaman. She made this statement following the 50th GST Council Meeting.
Sitharaman claimed that the decision to impose a 28% GST on horse racing, casinos, and online gaming was not made to destroy the business, but rather with the “moral question” that it cannot be taxed equally with necessities.
This indicates that a player will need to pay Rs 28 for every Rs 100 spent on an online game, per the GST Council. The game may depend on luck or skill.
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