Ashneer Grover
Ashneer Grover – the founder of BharatPe expressed his fury over 28% GST applied on online games. He took this to twitter and said that this is “murder of online gaming” industry. The prime concern of the entrepreneur is about the latest fantasy gaming platform ‘Cricketpe’. On Thursday, Ashneer Grover has further taken his stand and expressed that start-up founder should enter politics. He said, otherwise “this is going to be spate industry after industry”.
“….It is not happening,” said Ashneer Grover
BharatPe founder took it to Twitter and said, “RIP – Real money gaming industry in India. If the govt is thinking people will put in Rs 100 to play on Rs 72 pot entry (28 per cent Gross GST); and if they win Rs 54 (after platform fees)- they will pay 30 per cent TDS on that – for which they will get a free swimming pool in their living room, come the first monsoon – not happening!”
He further wrote: “It was good fun being part of the fantasy gaming industry – which stands murdered now. $10 Bn down the drain in this monsoon. Time for startups Founders to enter politics and be represented – or this is going to be spate industry after industry.”
Also Read: Finance Minister Announces Changes In GST Rates; Twitter Floods With Reactions
The change of GST rates
The GST Council resolved this evening to levy a 28% tax on the revenue of online gambling enterprises, racetracks, and casinos. The panel resolved to collect a 28 percent GST on the face value or payments made for playing online games, placing bets in casinos, and betting on races, according to Union Finance Minister Nirmala Sitharaman, who presided over the meeting.
The tax rate was chosen in accordance with a Group of Ministers (GoM) report that examined the taxation of internet gambling, horse racing, and casinos. Whether to levy a 28% GST on the face value of bets, gross gaming revenue, or only platform fees was the question before the GoM. The tax, according to the finance minister, will be applied to the total amount. Without making any distinctions based on whether the games needed talent or were based on chance, the tax on internet gaming corporations would be enforced.
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