In charts: 28% GST on eGaming not a win-win
The industry in India was worth just $0.54 billion in FY16 but has since grown to reach $2.6 billion in FY22 and estimated to touch $8.6 billion by FY27: a CAGR of 27%. To boot, Indian gaming companies have raised $2.8 billion from investors across the globe over the last 5 years.Also read | Online gaming companies plan to talk rules with states However, a report from Deloitte titled GST on Online Gaming, says a shift from the current 18% GST on Online Gaming (on a Gross Gaming Revenue basis) to 28% GST on a Contest Entry Amount basis, may result in industry degrowth leading to a drop in GST mop-up.
“Degrowth of the industry may also result in significant job losses and reduced investments, making small industry players (e.g. gaming startups) unviable,” the report stated.
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