Withdraw tax notices to online gaming industry: Delhi FM Atishi ahead of GST Council meet

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₹70,000 crore in foreign investment, with an additional ₹25,000 crore expected soon. “The unstable and erratic tax environment will impact not only online gaming sector, but the entire start-up sector," the minister said. Last month, Mint reported that the government is in process of sending out retrospective GST claims as high as ₹1.5 trillion across the entire gaming industry, claiming real-money gaming firms to qualify under gambling.

Multiple leading gaming firms are in process of receiving these notifications, which are expected to be rolled out by the end of the month. On 29 September, finance ministry’s revenue department notified new tax rate via an amendment to Central Goods and Services Tax Act, 2017. The amendment comes after 51st GST Council meet, on 2 August, recommended a tax rate of 28% on gross revenue of online gaming firms.

“…It is very important that this kind of notices that seek to finish the online gaming industry should be withdrawn. Today the GST Council meeting is taking place. I will bring this to the attention of GST Council that our tax notices will lead to closure of our online gaming industry and it is important to withdraw these notices," the minister said.

Entrepreneurs and startups have played a very important role in making Indian economy vibrant and in creating jobs, she said. “Moving forward, our economy needs startups and young entrepreneurs. But unfortunately, on the one hand, we speak about promoting start-ups and policies like start-up India, but on the other hand, GST Council has taken some decisions which go in the direction of finishing our start-up industry’s biggest sector," Atishi said in a biting criticism of the Council’s decision.