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Online gaming industry worried at possible GST hike on skill-based games

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New Delhi : Top online skill gaming associations on Tuesday expressed deep concern at reports that the GST rate on online skill games may be increased from existing 18 per cent to 28 per cent.
The E-Gaming Federation (EGF), the All India Gaming Federation (AIGF), and the Federation of Indian Fantasy Sports (FIFS) said that what is more worrying is some reports suggesting that the tax may be levied on total pool (prize money pooled plus the platform commission), and not on gross gaming revenue (GGR).
The latter, if implemented, they said, will mean the demise of the online skill gaming industry in India.
“Such a step is not only in dissonance with international best practices but is also violative of the principles of GST,” said Sameer Barde, CEO of EGF.
In the last few years, the online skill gaming sector has emerged as a growth engine for the Indian economy with direct benefits to a lot of sectors such as fintech, sports, animation & graphics, semiconductor, edtech, and software development.
In the last six years, the online skill gaming sector has received foreign investment of over $2 billion and employs around 50,000 people.

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