Quote of Dilsher Singh, founder, and CEO, Zupee on 28% GST on online gaming.
The Group of Ministers (GoM) has agreed to recommend hiking the GST rate on casino, race course and online gaming services to 28 percent. In a meeting held on May 2, the GoM discussed various aspects, including the possible GST rates and technicalities, in regard to these activities.
Basis that please find below the quote of Dilsher Singh, founder, and CEO, Zupee on 28% GST on online gaming.
Quote of Dilsher Singh:
‘The online gaming industry understands the perspective of the Government in levying 28% GST on the sector. However, its impact on the online gaming companies and around 400 million-strong gamers in the country is worth consideration. The Government’s success on rapidly connecting people is admirable, and it is due to this that India is dominating an emerging digital technology domain, which is online gaming. As a direct outcome, online gaming has become an entertainment and learning avenue for the masses rather than being a luxury entertainment avenue of the privileged. The 400 million gamers come from diverse economic backgrounds. Listing the industry under the highest tax bracket will directly impact the gaming population, the online gaming companies, and the sector as a whole. Consequently, high taxation may cause the sunshine sector to lose some sheen. It is worth consideration that for any emerging sector, especially one at the foundational or nascent stage, it is important that the companies are being incentivized with lower taxations. Similarly, the online gaming industry expects to fall under lower GST slab, which will be a considerable support for online gaming companies to invest in establishing a strong foundation. Furthermore, there is a need to introduce uniform regulatory framework that’s consistent, predictable, and aimed at promoting the industry. We earnestly hope that the Government will review the listing of gaming industry under 28% slab and help the sector to continue scripting strong growth in the years to come.’
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