BharatPe Co-founder Criticizes Government’s 28% GST Imposition on Online Gaming Industry
- ByStartupStory | July 16, 2023
In a strong statement, Ashneer Grover, co-founder of BharatPe, expressed his discontent with the government’s decision to levy a 28% GST on the online gaming industry. Grover argued that this move would have a detrimental effect on the fantasy gaming sector, urging entrepreneurs to consider entering politics to prevent similar impositions on other industries.
Grover, who recently launched his own fantasy gaming platform called Crickpe, voiced concerns about the impact of the GST on the industry. He emphasized the negative consequences of taxing users at such a high rate, highlighting the disincentive for participation in online gaming contests. Furthermore, he pointed out the additional burden of a 30% TDS (Tax Deducted at Source) on winnings, illustrating the potential loss of interest in the industry due to these financial implications.
The GST Council’s decision to impose a 28% tax on online gaming, casinos, and horse racing has been met with disappointment by industry players. West Bengal finance minister Chandrima Bhattacharya confirmed the council’s stance, stating that the tax would be applied at the entry point based on the full face value of bets.
This setback comes as a blow to the fantasy gaming industry, which had been projected to generate revenue exceeding ₹25,000 crore by 2027. The industry’s growth has been attributed to factors such as the improvement of digital infrastructure and the increasing adoption of digital payments, as highlighted in a joint report by Deloitte and the Federation of Indian Fantasy Sports (FIFS).
Grover’s critique sheds light on the concerns of stakeholders within the online gaming sector, raising questions about the potential impact on the industry’s growth and future prospects.
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