Online Gaming GST: The letter was signed by companies including Nazara Technologies, Mobile Premier League (MPL) and its game development unit Mayhem Studios, Gamescraft Technologies and WinZO Games.
Online Gaming GST: Over 130 online gaming companies and industry associations have approached the Center urging it to reconsider the 28 per cent GST on full face value for online gaming. A report on Saturday said that the companies have signed an open letter and sent it to the Center for a ‘viable and progressive GST regime’.
The companies have said that the proposal to levy 28 per cent GST on the full deposit value will stunt the growth of the fast-growing industry, reports The Economic Times.
“The proposal to levy GST on the full deposit value will reverse the growth path of the industry,” the letter to the government said. This will potentially have disastrous effects (including business closure) for MSMEs and Startups, who may not have the capital reserves to cope with such a sharp tax increase.’
The letter was signed by companies including Nazara Technologies, Mobile Premier League (MPL) and its game development units Mayhem Studios, Gamescraft Technologies and WinZO Games.
Apart from gaming industry bodies including All India Gaming Federation (AIGF), E-Gaming Federation (EGF), Federation of Indian Fantasy Sports (FIFS) and All India Game Developer Forum (AIGDF), they have also signed the letter.
AIGF represents companies such as MPL, Zoopee and Paytm First Games, while EGF represents companies including Games 24×7 and Junglee Games. FIFS is supported by platforms like Dream11 and Fantasy Arena.
On July 11, the GST Council imposed 28 per cent tax on online gaming, horse racing and casinos. Finance Minister Nirmala Sitharaman said after the 50th GST Council meeting that the effective date for levying 28 per cent GST on online gaming will be announced after the GST law is amended.
Sitharaman said the decision to impose 28 per cent GST on online gaming, casinos and horse racing was not aimed at eliminating the industry, but was taken considering the ‘moral question’ that it was not taxed at par with essential goods May go.