The Indian gaming industry has been left in shock by the recent proposal to impose 28% GST (Goods and Services Tax) on online games.
The Minister of Electronics and Information Technology, Rajeev Chandrasekhar, expressed his concern and requested the GST Council to consider the new regulatory framework.
On July 11th of this year, the GST Council decided to impose a 28% GST on all online gaming activities, whether they involve skill or chance.
This decision has been met with opposition from around 130 online game companies and industry associations, including prominent names like MPL, Gamekraft Technology, and Winzo Game, all of whom have appealed to the GST Council to reverse the decision.
The Internet and Mobile Association of India (IAMAI) has also voiced its concern regarding the imposition of 28% GST on "the full face value of the consideration instead of just the platform fee."
They fear that this move could have a significant impact on India's digital economy and the online gaming industry.
Many gamers are also worried about the increased GST fees, stating that this hike will eat into their already low-margin incomes, leading some to consider discontinuing playing games altogether.
On the other hand, some experts argue that this move is a positive one for Indian gamers.
After the lockdown, many students have become involved in the gaming industry, but this has also led to instances of scamming and significant financial losses.
Regulating the fees, according to them, could help control such practices.