The GST Council, currently in a two-day meeting, is tipped to be considering a proposal to implement 28% GST on the gross gaming value (GGV) of a tournament. GGV includes participation fees that gamers pay to join a tournament or participate in online skill game matches, and a commission rate that gaming platforms charge on the fee paid by users to provide the service.

On 18 May, Mint had reported that a group of ministers advised the GST Council to include online gaming along with casinos and race courses to implement 28% tax on the sector. Industry stakeholders had that time said it was important to differentiate between game of skill and game of chance – and treat each sector with distinction.

Currently, an 18% GST is levied on the commission rate that platforms charge, which is called the gross gaming revenue (GGR). Industry stakeholders are worried that the 28% GST levy will lead to a much higher tax outgo for online skill gaming platforms.

As part of a joint statement earlier today by EGF, AIGF and FIFS, Sameer Barde, chief executive of EGF, said increasing the tax burden on online skill gaming platform operators in India would "not only be in dissonance with international best practices, but is also violative of the principles of GST." He added that the move would "annihilate this sunrise sector."

Fellow stakeholders of the gaming industry are also in agreement. On Monday, Amrit Kiran Singh, advisor to AIGF, told Mint that levying 28% GST on the GGV – instead of the present 18% GST on GGR – will "lead to an almost 900% increase in taxes, which will kill the emerging gaming industry."