Shaadi.com founder and Shark Tank India judge, Anupam Mittal, has joined the ongoing debate surrounding the GST Council’s decision to impose a 28% tax on online gaming, casinos, and horse racing. Mittal expressed his opinion on Twitter, suggesting that entrepreneurs should focus on building rockets rather than gaming companies and consider shifting their investments from cryptocurrencies to tomatoes.
GST Council Defends Decision and Rationale
The GST Council has defended its decision to impose taxes on online gaming, emphasizing that it was made after careful consideration. The Council believes that the tax will aid in regulating the online gaming industry, ensuring fairness and transparency.We will apply the tax without distinguishing between games of skill and chance.
Mixed Reactions from Experts and Entrepreneurs On GST
The imposition of GST on online gaming has sparked mixed reactions from experts and entrepreneurs. Ashneer Grover, co-founder of BharatPe and former Shark Tank India judge, criticized policymakers for implementing such a levy, stating that it could result in a drying up of funds in India. Grover, who owns Crickpe, a fantasy game platform, expressed concerns about the impact on the entire startup ecosystem and foreign direct investment.
All India Gaming Federation Raises Objections
The All India Gaming Federation (AIGF), representing companies like Nazara, GamesKraft, Zupee, and Winzo, has strongly opposed the GST Council’s decision, deeming it unconstitutional, irrational, and detrimental. The AIGF argues that the decision disregards legal precedents and unfairly lumps online skill gaming with gambling activities. They believe this move will have severe consequences, including job losses and hindering industry growth, while benefiting illegal offshore platforms.
Nazara Technologies Expects Minimal Impact
On the other hand, Nazara Technologies, an online gaming company operating titles such as Classic Rummy and Halaplay, has welcomed the GST Council’s decision, foreseeing minimal impact on its revenues. Nazara clarified that the tax will only apply to the skill-based real money gaming segment, which constituted a modest 5.2% of its FY23 revenue. The company remains committed to its growth agenda and will proactively mitigate any potential impact on the affected segment. Nazara plans to continue pursuing organic and inorganic opportunities across various segments in which it operates.
Also Read The Latest News:
Swiggy’s Genie delivery service raises safety concerns after Apple Watch theft
Mark Lucovsky, Google’s Senior Director of Engineering for AR and XR devices, announces departure
The post Anupam Mittal Criticizes GST Council’s Tax on Online Gaming appeared first on StartupNews.fyi.
