Popular businessman and one of the judges on Shark Tank India, Anupam Mittal, recently poked fun at the latest GST council decision to increase the tax rate on online gaming to 28% on full face value.
Latest lessons – stop gaming, start building rockets, move money from crypto to tomatoes 👾🚀🍅
— Anupam Mittal (@AnupamMittal) July 12, 2023
Mittal said, “Latest lessons – stop gaming, start building rockets, move money from crypto to tomatoes,” implying that people should now stop playing games and instead start building rockets. For those who invested in crypto should invest in tomatoes pointing towards the recent price hike.
The online real money gaming industry as a whole has voiced its disappointment with the decision. Some say that they did not expect the council to implement the tax rate at full face value after so many requests, while others simply call it the “end of the online real money gaming industry”.
Ashneer Grover, another popular businessman and another one of the judge also previously spoke on the topic. “It was good fun being part of the fantasy gaming industry – which stands murdered now. $10 billion down the drain in this monsoon,” he said.
Grover also recently entered the real money gaming sector right before the start of IPL 2023 season with his fantasy cricket app called CrickPe.
The companies are urging the GST council to reconsider their decision as it might have harmful consequences for the online gaming Industry. They claimed that the tax burden will force startups to shut down and lower foreign direct investments.
Revenue Secretary Sanjay Malhotra in an interview responded that the decision was unanimous and, according to him, the council will keep it this way. He further clarified that the tax is only applicable to real money gaming, which is only a part of the entire gaming industry containing esports, AAA, and casual gaming.
The council will be presenting the draft amendment in the monsoon assembly starting July 20. Further decisions by the companies remain to be seen; if the decision remains unchanged, it might be better for companies to explore the aforementioned gaming sector
G2G have also listed possible reasons why the industry was not able to convince the council to keep the GST on gross gaming revenue (GGR).