The new tax puts fantasy gaming tax at the same level as gambling and betting
Former Bharatpe Co-founder and MD Ashneer Grover
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Ashneer Grover voiced his objections on the CentreтАЩs decision to levy 28 per cent goods and services tax (GST) on the commissions online gaming companies collect from customers.
The GST Council on Tuesday approved a uniform 28 per cent tax imposition on full тАЬface valueтАЭ of bets involving online gaming, casinos, and horse racing.
тАЬWill bring an amendment to the GST law to include online gaming and (it) will be taxed at 28 per cent on full face value,тАЭ stated the finance minister Nirmala Sitharaman.
Currently, online gaming platforms pay 18 per cent tax on commissions. The new rule will bring the tax on par with betting and gambling.
After this announcement, the former co-founder and managing director of BharatPe took to Twitter to air his grievances with the steep increase in tax.
тАЬRIP – Real money gaming industry in IndiaтАж It was good fun being part of the fantasy gaming industry – which stands murdered now. $10 Bn down the drain in this monsoon,тАЭ he said.
Grover has also recently launched a cricket-focused fantasy sports app named CrickPe, which will be affected by the new rules.
He adds, тАЬIf the govt is thinking people will put in Rs 100 to play on Rs 72 pot entry (28% Gross GST); and if they win Rs 54 (after platform fees)- they will pay 30% TDS on that – for which they will get free swimming pool in their living room come the first monsoon – not happening!тАЭ
The decision to increase the tax was taken despite industry stakeholders arguing that тАШgames of skillтАЩ should be treated separately than тАШgames of chance.тАЩ
The former Shark Tank judge and investor added that it was тАЬTime for startups Founders to enter politics and be represented – or this is going to be spate industry after industry.тАЭ
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