Entrepreneur and co-founder of fantasy gaming app CrickPe Ashneer Grover on Thursday, July 20, made a post of his Twitter account. In the post, he was seen explaining the effect of the new GST rate on online gaming to the industry.

Grover explains how the winner in a two-person game will have to pay double the tax and TDS. He explained how the game will have a 1300% increase in GST payable on winners’ gross income.

“This has become an existential issue for the gaming industry,” he said, while questioning why will a gamer play online real money games which now only gives half of what they were supposed to earn?

He further says that this will lead to a decline in player count and less revenue for the real money gaming industry, which will ultimately lead to less tax revenue for the government. The IIM Ahmedabad alumni also drew comparison between GST charged on online gaming versus the GST charged only on brokerage in stocks and mutual fund investments.

“Even stock market has GST on brokerage and not on investment,” he added.

Ending the video, Grover asked the government officials to have a meeting with the gaming industry and understand their perspective before finalizing the decision to levy 28% GST on full face value for online real money gaming.

See the tweet here –

Gaming pe 28% GST par gaming industry ka PoV. @AIGFofficial #gamingnotbetting pic.twitter.com/mx7WTorM7P

— Ashneer Grover (@Ashneer_Grover) July 20, 2023

Ashneer announces CrickPe 2.0

Despite the government raising the Tax on online real money gaming, Grover has also stepped up. He seems to be prepping in case the tax rate and how it is levied remains the same.

Grover has posted a hiring announcement with multiple positions and a new office in Chandigarh with quote “Ab hum GST ki Googly pe Reverse Sweep maarenge”.

Looking at the post, there seems to several positions available ranging from UI/UX designer, iOS and Android frontend developer, growth/marketing head, Head Ops, CPO, and EA to the founder, all with quirky comments and requirements.

Launched as a fantasy gaming app in March 2023, Ashneer Grover’s startup had to take a pivot in his startup. While there is no information on the changes planned with Third Unicorn, it is clear that it will be much more than a fantasy gaming app soon.