After much uproar over levy of 28 per cent GST on online gaming, Finance Minister Nirmala Sitharaman clarified that the 28% tax will be levied only on the entry amount paid on online gaming, casinos and horse racing and not on the total value of each bet placed. However, as per the experts, the introduction of a 28% Goods and Services Tax (GST) is posing a threat to the online gaming business. Anurag Dwivedi, a fantasy cricket specialist, also expressed his concerns about the potential ramifications of the move.
In an unexpected turn of events, the government's decision to levy a 28% GST on online gambling has sparked discussion throughout the industry. While the measure is intended to increase government revenue, it has caused major concern in the industry. Critics are concerned that the high tax rate will deter users and limit the industry's growth potential.
Anurag Dwivedi, who has been involved in the sector for over 6 years, said, "This decision to subject online gaming to a 28% GST is bound to have a profound impact. The consequences could be far-reaching, particularly for those eager to enter the sector in order to learn, adapt, and contribute."
He further said, "The implications extend beyond just individual gamers. Smaller and rising fantasy gaming platforms may find it increasingly difficult to survive under such a tax burden. Furthermore, with the upcoming Indian Premier League (IPL), where fantasy gaming apps will play an important role as sponsors, this decision may pose issues for these platforms."
A high GST rate on online gaming has the potential to destabilize the industry's ecology, harming numerous stakeholders such as users, developers, and investors. As the debate over this decision heats up, the industry will be watching intently to see if any changes are made to offset the possibly negative consequences.
