GST On Online Gaming: Will the decision to impose 28 percent GST on online gaming be withdrawn? This question is being raised because within the government itself, the GST Council’s decision to impose 28 percent GST on online gaming is being questioned. Minister of State for Information Technology Rajeev Chandrashekhar said that his ministry will ask the GST Council to reconsider its decision to impose 28 per cent tax on online gaming.
Rajeev Chandrasekhar said at the CNN-News 18 Town Hall event that we will approach the GST Council and ask them to reconsider their decision to impose 28 percent GST on online gaming. He said that the GST Council is not the Government of India.
In fact, the industry has been opposing the GST Council’s decision to impose 28 percent GST on the online gaming industry from the very beginning. The industry believes that due to this the investment in the sector will decrease and people’s jobs will be lost due to this decision. The size of India’s online gaming industry has become 20 billion dollars. Between January 2021 and June 2022, gaming companies have raised an investment of $ 1.5 billion. The gaming industry claims that this sector is providing employment to about 1 lakh people. Currently the revenue is $ 2.5 billion, which can double by 2025.
The gaming industry believes that the decision of the GST Council has already dealt a blow to the industry. This decision will have an impact on the cash flow of companies. Due to this, companies will not be able to focus on innovation in the gaming industry, as well as investment in the sector will also decrease. Due to this decision, job loss can be seen in the online gaming sector. Also, it will be difficult for Indian companies to compete with foreign companies. This decision is a big loss to the customers who play online games. With 28 per cent GST, online gaming has become very expensive for them.
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