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On Wednesday, BharatPe co-founder Ashneer Grover received assurances from Delhi finance minister Atishi, a member of the GST Council helmed by Union finance minister Nirmala Sitharaman, that she would ask the group to reconsider its decision to impose GST on online gaming.
Thank you, Ashneer Grover, for pointing up the issues with this choice. Before the 51st meeting of the GST Council on Wednesday, Atishi tweeted, "Today the @GST_Council will be meeting again, and I will be requesting them to reconsider the decision to impose 28% GST on Online Gaming.
The AAP leader continued, "It is clear that supporting start-ups is the only way our economy will grow!"
Grover, who has frequently criticized the GST Council's decision to tax online gaming, sent a tweet on July 11 in response to Atishi's. The body had earlier that day, during its 50th meeting, made a number of decisions, including putting casinos, horse racing, and internet gaming in the 28% tax bracket, which is the highest tax bracket under the Goods and Services Tax (GST).
The proposal has also been opposed by the gaming sector, which claims it would face "significant challenges" as a result.
The implementation, in accordance with Shivani Jha, Tech Policy Attorney and Director, EPWA (E-Gamers and Players Welfare Association), will result in a fee of 28 per $100 spent on a game.
"This will not only deter amateur players from playing; the pros who depend on it for a living will pay more in taxes. Additionally, it might drive people to use offshore gambling platforms, and the goal of developing a digital gaming ecosystem that advances at this stage is unclear, Jha told HT's sister publication LiveMint.
