28 Percent GST on Online Gaming: The Goods and Service Tax Council proposed to impose 28 percent GST on online gaming, after which the discussion about it has increased. Indian and foreign investors have also expressed concern about this. They say that by imposing 28 percent GST on the online gaming industry, US $ 2.5 billion will be lost. A group of 30 Indian and foreign investors have written a joint letter to Prime Minister Narendra Modi regarding this.

On July 21, 30 investors from India and abroad including Peak XV Capital, Tiger Global, DST Global, Bennett, Coleman & Company Limited, Alpha Wave Global, Kris Capital, Lumikai wrote the letter. PM Narendra Modi Appealing to the investors have appealed for direct intervention in the decision of the GST Council. At the same time, former Judge of Shork Tank India, Ashneer Grover has also expressed concern over the decision of 28 percent GST.

What did the investors say in the letter?

It has been said in the letter written to the PM that investment in the online gaming industry is expected to reach US $ 4 billion in the next 3 to 4 years. In such a situation, if 28 percent GST is imposed on it, then it can be affected. Further said that this proposal will present the worst and difficult system as compared to other countries. Due to this, there will be a danger of sinking US $ 2.5 billion.

may have to pay this much tax

Investors say that the GST Council’s decision has shocked and disappointed. This will greatly reduce the trust in Indian technology or any other emerging sector. If this proposal of GST is implemented, then the gaming industry will have to go through a huge loss. Investors said that the GST burden would increase by 1,100 per cent and the winning customers would have to pay 50 to 70 per cent tax on Re 1.

Ashneer Grover expressed concern

Posting a video on Twitter, Ashneer Grover has expressed concern over the GST Council’s proposal of 28 percent GST. He appealed to the government to hold talks with the gaming industry and find a way out. The online gaming industry can be badly affected by the imposition of 28 per cent GST.