Delhi’s Deputy Chief Minister, Atishi, voiced concerns over the recent imposition of a 28% Goods and Services Tax (GST) on the online gaming industry. She highlighted the sector’s potential for employment generation, calling it a “sunrise sector” within the startup ecosystem.
Online gaming has emerged as a major contributor to the Indian job market, employing over 50,000 people across the country. The decision by the GST Council to impose a 28% GST on this industry has sent ripples of concern through the gaming community.
One of the key concerns raised by Atishi is the potential impact of this tax hike on the thriving online gaming industry. The substantial GST rate may lead to increased prices for gamers, which could, in turn, deter new players and affect the growth of this sector.
Furthermore, Atishi disclosed that the GST Council has also decided to issue tax evasion notices for the past six years, amounting to a staggering Rs 1.5 lakh crores, to companies operating within the online gaming sector. This move has further escalated concerns among industry stakeholders.
In response to these developments, Atishi announced that she will strongly advocate for the withdrawal of tax notices to the online gaming sector during the GST Council meeting scheduled for today. She emphasized the need for a more balanced approach to taxation that considers the industry’s growth potential and its positive contribution to employment in India.
The outcome of the GST Council meeting will be closely watched by stakeholders in the online gaming industry and gaming enthusiasts across the country.
The industry, which has seen rapid expansion in recent years, now faces a critical juncture, with its future growth potentially hinging on the Council’s decision regarding the 28% GST rate and tax evasion notices.
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