Rethink 28% GST on online gaming: Atishi

Atishi, the finance minister of Delhi, expressed opposition on Wednesday to the Centre’s decision to impose a 28% goods and services tax (GST) on online gaming platforms. The Delhi government stated that Atishi raised this issue during the 51st GST Council meeting and emphasized the need to reconsider this move in order to support startups in the country.

Atishi highlighted that the online gaming industry is the fastest-growing sector in India, attracting investors from both domestic and international markets. With millions and billions of dollars being invested in this industry, imposing heavy taxes will burden it and discourage investment in Indian startups. This, in turn, will negatively impact the entire startup ecosystem, Atishi stated during the meeting.

Instead of imposing excessive taxes on the online gaming sector, Atishi urged the central government to promote its growth. However, despite repeated requests, Union finance minister Nirmala Sitharaman was unwilling to reconsider this decision, according to the statement.

Atishi also mentioned that over 40 crore people across all age groups in India play games on online platforms. In addition to being a substantial market and attracting millions of dollars in investments, this sector also creates employment opportunities for thousands of individuals.

“If a 28% GST is imposed on the online gaming industry, it may lead to its collapse, resulting in the demise of over 80% of the associated startups,” Atishi warned, adding that more than 50,000 jobs may be lost as a consequence.