Online gaming body urges finance minister to reduce GST to 28 percent
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In an open letter to Sitharaman, gaming companies from medium and small towns (Tier-2 and Tier-3) under the banner of Indian Gamers United said that high taxation would encourage illegal gaming and foreign platforms.
New Delhi. An association of online gaming companies on Tuesday urged Finance Minister Nirmala Sitharaman to reduce the 28 per cent Goods and Services Tax (GST). The industry body said the tax was excessive and would encourage gaming companies to operate illegally. In an open letter to Sitharaman, gaming companies from medium and small towns (Tier-2 and Tier-3) under the banner of Indian Gamers United said that high taxation would encourage illegal gaming and foreign platforms. The government will not get any tax from these, but legitimate gaming companies will be in big trouble.
The body also advocated a distinction between games of luck like gambling and games of skill like gaming. Indian Gamers United said in a statement that gaming is a skill-based activity and cannot be mixed with gambling or games of chance like horse racing. He advocated to relook at taxation and make it industry friendly. The GST Council, in its meeting on Wednesday, will decide on the modalities for implementing 28 per cent GST on online gaming, casino and horse racing. The GST Council, which met last month under the chairmanship of Finance Minister Nirmala Sitharaman, decided to tax the entire amount of transactions in online gaming, casinos and horse races at the rate of 28 per cent.
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