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Ashneer Grover Challenges GST Council, Will 28 percent Tax 'Kill' the Gaming Industry

Delhi Finance Minister Fights to Save the Industry from 28% GST!

2 August 2023


Kunal Tyagi

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  • Delhi Finance Minister Atishi Marlena leads the call for reconsidering the 28% GST on online gaming.

  • Influencer Ashneer Grover criticizes the decision, warning that it could "kill the industry."

  • The gaming industry's growth and economic potential at risk due to the hefty tax burden.

The online gaming industry in India has been experiencing rapid growth in recent years, but a recent decision by the Goods and Services Tax (GST) Council to impose a 28% tax on online gaming has raised concerns among entrepreneurs, investors, and gamers alike. Delhi Finance Minister Atishi Marlena, along with many others, believes that this move could severely hamper the industry's growth and negatively impact the economy. In this blog, we will delve into the concerns raised by stakeholders and explore the implications of this tax imposition on the burgeoning gaming sector.

Delhi Finance Minister Atishi Marlena has taken the lead in advocating for the reconsideration of the 28% GST on online gaming. She met with startup investors and representatives from the gaming industry to understand their concerns. Atishi firmly believes that supporting start-ups and entrepreneurship is crucial for the country's economic growth. She tweeted her intention to ask the GST Council to reconsider the decision and to promote a more favorable regulatory environment for the gaming industry.

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Influencer Ashneer Grover has been an outspoken critic of the GST Council's decision from the very beginning. He predicts that this steep tax hike will "kill the industry." Grover highlights the math behind the increased tax burden, which will significantly reduce gamers' profits. The excessive taxation, coupled with the introduction of TDS (Tax Deducted at Source), could deter gamers from participating, thereby affecting the industry's revenue generation.

The gaming industry has become a significant contributor to India's economy, with massive potential for further growth. However, the 28% GST threatens to stifle this potential. If entrepreneurs like Ashneer Grover are to be believed, the consequences of this decision could be catastrophic, with billions of dollars at risk and the dreams of many start-up founders shattered. Atishi Marlena's plea for reconsideration underscores the importance of nurturing entrepreneurship as a means to boost economic growth.

Union Minister Rajeev Chandrasekhar acknowledged the concerns raised by the gaming industry over the new regulatory framework. He suggested that the government may request the GST Council to take into account the facts before making a final decision. Chandrasekhar also noted that the Council took three years to reach this decision, highlighting the complexity of the matter.

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