GST rate increase will kill online skill gaming industry: associations

GST level rise will kill the online gaming industry: organizations

Associations are also concerned with the tax levied on the amount of pool money, not on the amount of sports revenue

Raising the goods and services (GST) tax on online skills games from 18% to 28% available could cause a ‘death’ for the industry in the country, warns three online gaming organizations. The two-day GST Council meeting is currently underway and the panel is said to be considering a tax increase in online skills games.

In a joint statement on Tuesday, the E-Gaming Federation (EGF), All India Gaming Federation (AIGF) and the Federation of Indian Fantasy Sports (FIFS) said their main concern was tax deductions. combined prize money and platform commission) and not in gross game revenue (GGR).

The implementation of this could mean the collapse of the online gaming industry in the country. “Such a move is not only in line with best international standards but also in violation of GST principles,” the organizations noted.

Highlighting the fact that the sector has the potential to bring significant economic benefits, organizations urged the GST Council to respect the value of sporting events and to decide on the best international tax systems.

“International research has shown that tax incidents, in the form of prize money instead of sports revenue, lead to a reduction in tax revenue for the finance manager and ultimately provide fiscal market owners to black market employees at the expense of official taxpayers,” Anwar explained. Shirpurwala, CEO of FIFS.

In fact, online game operators have been forums that bring together players from a variety of backgrounds. The combined prize money was eventually awarded to the winning player, explains Sameer Barde, CEO of EGF.

“The court charges a fixed fee, known as GGR, and pays taxes on that. If you were to pay extra tax on the entire quantum (total charge and commission), not only would it be wrong but it would also end this solar eclipse, ”he added. Barde.

Over the past few years, the online gaming industry has emerged as India’s economic growth engine with direct benefits in fields such as fintech, sports, animation & graphics, semiconductor, edtech and software development, organizations showed. The sector has attracted more than $ 2 billion in foreign investment over the past five years, they said.


I am Sanjit Gupta. I have completed my BMS then MMS both in marketing. I even did a diploma in computer software and Digital Marketing.

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