 "Ashneer Grover")
Ashneer Grover voiced his objections on the Centre’s decision to levy 28 per cent goods and services tax (GST) on the commissions online gaming companies collect from customers.
The GST Council on Tuesday approved a uniform 28 per cent tax imposition on full “face value” of bets involving online gaming, casinos, and horse racing.
“Will bring an amendment to the GST law to include online gaming and (it) will be taxed at 28 per cent on full face value,” stated the finance minister Nirmala Sitharaman.
Currently, online gaming platforms pay 18 per cent tax on commissions. The new rule will bring the tax on par with betting and gambling.
After this announcement, the former co-founder and managing director of BharatPe took to Twitter to air his grievances with the steep increase in tax.
“RIP - Real money gaming industry in India… It was good fun being part of the fantasy gaming industry - which stands murdered now. $10 Bn down the drain in this monsoon,” he said.
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Grover has also recently launched a cricket-focused fantasy sports app named CrickPe, which will be affected by the new rules.
He adds, “If the govt is thinking people will put in Rs 100 to play on Rs 72 pot entry (28% Gross GST); and if they win Rs 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!”
The decision to increase the tax was taken despite industry stakeholders arguing that ‘games of skill’ should be treated separately than ‘games of chance.’
The former Shark Tank judge and investor added that it was “Time for startups Founders to enter politics and be represented - or this is going to be spate industry after industry.”
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…
— Ashneer Grover (@Ashneer_Grover) July 11, 2023
