 "Atishi, Delhi power minister Atishi")
Delhi finance minister Atishi has "strongly opposed" the GST Council's decision to implement a 28 per cent GST on online gaming platforms, an official statement said on Wednesday.
The GST Council chaired by Union finance minister Nirmala Sitharaman on Wednesday decided that 28 per cent GST will be levied at face value of entry level bets placed in gaming platforms and casinos.
The Centre will bring amendments to the Central GST law in the ongoing monsoon session of Parliament, following which states will pass the amendments to State GST law in their respective assemblies.
According to the official statement, Atishi said that the BJP-led central government is not ready to reconsider GST rates on online gaming platforms and the 28 per cent tax rate could "restrict" the industry growth.
"More than 900 startups in India are based on the online gaming industry. BJP's lack of futuristic vision will lead to the industry's destruction. The central government promotes startups but it seeks to burden the emerging online gaming industry," she said.
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The minister claimed that high tax rates on online gaming will impact nearly 80 per cent of startups.
"The new GST rate will not only harm the online gaming industry but also discourage investors from investing in Indian startups. It will hit the entire Indian startup ecosystem," she claimed further.
According to the statement, Atishi "strongly opposed" the new GST rate on online gaming platforms in the 51st GST Council meeting urging for its reconsideration.
"Despite repeated requests, Union finance minister Nirmala Sitharaman was not willing to reconsider this," the statement quoted Atishi as saying.
During the meeting, Atishi said, "The online gaming industry is the fastest-growing industry in the country. Investors from India and abroad are attracted to it, leading to investments in the millions and billions of dollars.
"Levying heavy taxes on this rapidly growing industry will burden it and discourage investment in Indian startups, causing a negative impact on the startup ecosystem."
The minister also claimed that 40 crore people of all ages across the country use online gaming platforms. If a 28 per cent GST is imposed on it, the entire industry could collapse.
She said that imposing such "high" taxes would discourage people from gaming and it will "completely destroy" the industry. The immediate impact would be the loss of 50,000 jobs, she claimed.
Ahead of the GST Council's meeting, Atishi on Tuesday met representatives from the online gaming industry and assured them to raise their concerns in the meeting.
The Council had at its meeting last month decided to levy a 28 per cent GST on full face value of bets placed and Wednesday's meeting was to deliberate on the tax law changes that would be required to implement it.
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
