‘It was good fun being part of the fantasy gaming industry - which stands murdered now. $10 Bn down the drain in this monsoon’, said Ashneer Grover
'It was good fun being part of the fantasy gaming industry - which stands murdered now. $10 Bn down the drain in this monsoon', said Ashneer Grover
PremiumThe GST Council Tuesday said it would impose a 28% tax on funds that online gaming companies collect from their customers, which could lead to higher ticket prices.
Finance Minister Nirmala Sitharaman, who chairs the goods and services tax (GST) council, comprising state finance ministers, said the decision to tax online gaming was reached after extensive discussion. The Finance Minister said the tax will be levied on the entire value.
But, the industry experts raised red flag on the very concept; they said tax on entire value would kill the industry and they may have to pass on taxes by raising the ticket prices of games.
Haseeb A Drabu--a politician, economist and the former member of Jammu and Kashmir Legislative Assembly said, "To levy demerit goods GST on online gaming reflect inadequate appreciation of what this sector is all about and how transformative it can be. This sunrise startup sector in with immense potential to drive the digital economy will get stunted. Needs a rethink. It is not gambling!
Ashneer Grover, former co-founder and managing director of the Indian fintech company BharatPe said, "It was good fun being part of the fantasy gaming industry - which stands murdered now. $10 Bn down the drain in this monsoon." He twitted:
"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."
On the other hand Finance Minister Sitharaman to allay the concerns of the gaming industry that tax on entire value would kill the industry, the Finance minister said, "we are not killing any industry" but gaming and gambling cannot be given a treatment lesser than essential industry.