eGaming players remain bullish despite GST issues, demand more clarity on regulations

livemint.com:

GST) in FY23 and FY24 up to October, Minister of State for Finance Pankaj Chaudhary informed the Rajya Sabha on Tuesday, December 5. The update from the minister has received mixed responses from the eGaming sector.

The minister said in a written response that the notices implicated GST dues of ₹1.12 trillion. Speaking on the challenges faced by the eGaming sector, Roland Landers, CEO of the All India Gaming Federation (AIGF), said, “With the introduction of a new GST regime, and its impact on the industry, and the possibility of consolidation among industry actors, it is expected that the industry will be operating in considerably more difficult circumstances as it enters the new year." "The increased GST rate on online money gaming industry (28% on the entire deposit amount, from previous industry stand of levying GST @ 18%, only on the platform fees) has impacted the industry adversely, causing some of the money gaming platforms to announce closure of business itself and in some cases, layoffs.

The GST Council had decided to review these amendments after six months, evaluating the impact of these amendments on the industry," said Payal Thaker, Partner, Indirect Tax, BDO India. By 2025, India is projected to hold around 5 per cent (US$ 40 billion) of the global market with a yearly growth rate of between 25 and 30 per cent.

Additionally, the sector is expected to create over 1,60,000 new jobs. The gaming sector is anticipated to grow by 30 per cent annually as one of the fastest-growing segments in media and entertainment by 2025, according to the India Brand Equity Foundation (IBEF).