Joy Bhattacharya, CEO of All India Fantasy Sports Federation (FIFS) said, “we are disappointed that the GST Board and Authorities have decided to impose a GST of 28% on general admission. Including bonus. This sentiment is shared by all stakeholders in India’s growing online gaming industry as the Goods and Services Tax (GST) Commission has announced a sales tax rate of 28%. for online gaming.
Bhattacharya and many FIFS members believe that changing the gross tax estimate in question will cause irreversible damage to the industry, resulting in loss of budgetary revenue and the loss of thousands of skilled engineers’ jobs. “This decision will undermine the $2.5 billion of FDI already committed by investors and potentially jeopardize new FDI in the sector,” he said. “…Loss of user and government revenue.
The online gaming industry in India has grown significantly in recent years and today there are nearly 1,000 companies employing over one million people in the industry. The numbers are expected to skyrocket, making the online gambling industry an economic powerhouse.
The GST Council`s latest decision is a shock to India’s gaming industry, which is estimated to be worth around $2.8 billion in 2022. When it comes to online gaming in India Taxation and legitimacy largely depend on whether they are considered a game of chance or a game of skill. Games of chance attract more indirect taxes or GST, while games of skill attract less GST. The board has now argued that there should be no distinction between the two types of games. Long before the decision to levy the 28% GST, the main dilemma was whether GST should be applied to all cash or just the service element earned from online gambling platforms.
The Ministry of Electronics and Information Technology has been designated as the focus of the online gaming sector and is responsible for the sustainable development of the industry. While it has been uncertain for months which path India will take for its burgeoning online gaming sector, the new financial system has raised further concerns in the industry. . The 28% GST applies to the entire face value of the game and the government needs to amend the GST law to include online gaming as a taxable object including fish. Gambling, lottery and gambling.