Indian Online Skill Gaming Stakeholders Urge Tax Reform in Letter to PMO and Ministries

Stakeholders in the online gaming industry in India have sent a letter to the PMO and relevant ministries expressing their concern over the recent implementation of the 28% GST on the sector. This sudden increase has caused a great deal of distress and uncertainty for the industry. Currently, online gaming companies are subject to the 18% GST on GGR or Platform Fee, however, the stakeholders suggest that the GST should be increased to 28%, which would result in a 55% increase in tax burden. Furthermore, they suggest that the tax should only be levied on the platform fee, or the gross gaming revenue generated by the industry, in line with the taxation structure of other tech service platforms. The stakeholders are appealing to the government to protect and promote the sector, as it contributes to the economy and creates jobs. They hope that the stakeholders’ concerns will be addressed and appropriate tax reforms implemented to ensure the sustainable growth of the sector.