'Time for startups founders to enter politics': Ashneer Grover after GST Council imposes 28% tax on online gaming
Ashneer Grover, who recently launched a cricket fantasy gaming platform 'Crickpe', said it was time for startup founders to enter politics and be represented otherwise "this is going to be spate industry after industry".
- Jul 11, 2023,
- Updated Jul 13, 2023 3:34 PM IST
Hours after the Goods and Services Tax (GST) Council decided to impose a 28 per cent tax on the turnover of online gaming companies, former BharatPe founder Ashneer Grover expressed his displeasure at the move which he said will "murder" the gaming industry. Grover, who recently launched a cricket fantasy gaming platform 'Crickpe', said it was time for startup founders to enter politics and be represented otherwise "this is going to be spate industry after industry".
"RIP - Real money gaming industry in India. If the govt is thinking people will put in Rs 100 to play on Rs 72 pot entry (28 per cent Gross GST); and if they win Rs 54 (after platform fees)- they will pay 30 per cent TDS on that - for which they will get a free swimming pool in their living room, come the first monsoon - not happening!" Grover said in a tweet.
He further wrote: "It was good fun being part of the fantasy gaming industry - which stands murdered now. $10 Bn down the drain in this monsoon. Time for startups Founders to enter politics and be represented - or this is going to be spate industry after industry."
This evening, the GST Council decided to impose a 28 per cent tax on the turnover of online gaming companies, horse racing and casinos. Union Finance Minister Nirmala Sitharaman, who chaired the meeting, said the panel decided to levy a 28 per cent GST on the face value or payments made for playing online games, bets in casinos, and on racing.
The tax rate was decided based on the recommendation of a Group of Ministers (GoM) that looked at taxing casinos, horse racing, and online gaming. The issue before the GoM was whether to impose a 28 per cent GST on the face value of bets, gross gaming revenue, or just on platform fees. The finance minister said the tax will be levied on the entire value. The tax on online gaming companies would be imposed without making any differentiation based on whether the games required skill or were based on chance.
When asked about the concerns that tax on the entire value would kill the industry, the minister said, "We are not killing any industry" but gaming and gambling cannot be given a treatment lesser than essential industry. "So the moral question was also discussed. It does not mean they be promoted more than essential industries," she said.
Reacting to Grover's tweet, Vivan, a Twitter user, said that is the "true tyranny of sachetisation of play-per-view in the gaming industry in India". He said the government should stop marketing itself as startup-friendly.
Jay, a portfolio manager, said it was time for high-net-worth individuals to move to UAE and save on personal income tax. "Personal Income Taxation is theft - Many countries that impose such taxes got their independence fighting against such taxation," he said.
However, there were some who backed Sitharaman. Prashant Dahibhate, an IT infra cloud professional, called it a very good move as he said most of these gaming apps are Chinese and they are taking huge money out of the Indian economy on this addiction.
Ashish Agrawal, a software engineer, said the government is more than startups for gambling. "If you know in every match of IPL, around 300 cr money is played. A lot of people waste just their time, doing all the calculations and other stuff. Good move but again the gambler will always gamble."
Hours after the Goods and Services Tax (GST) Council decided to impose a 28 per cent tax on the turnover of online gaming companies, former BharatPe founder Ashneer Grover expressed his displeasure at the move which he said will "murder" the gaming industry. Grover, who recently launched a cricket fantasy gaming platform 'Crickpe', said it was time for startup founders to enter politics and be represented otherwise "this is going to be spate industry after industry".
"RIP - Real money gaming industry in India. If the govt is thinking people will put in Rs 100 to play on Rs 72 pot entry (28 per cent Gross GST); and if they win Rs 54 (after platform fees)- they will pay 30 per cent TDS on that - for which they will get a free swimming pool in their living room, come the first monsoon - not happening!" Grover said in a tweet.
He further wrote: "It was good fun being part of the fantasy gaming industry - which stands murdered now. $10 Bn down the drain in this monsoon. Time for startups Founders to enter politics and be represented - or this is going to be spate industry after industry."
This evening, the GST Council decided to impose a 28 per cent tax on the turnover of online gaming companies, horse racing and casinos. Union Finance Minister Nirmala Sitharaman, who chaired the meeting, said the panel decided to levy a 28 per cent GST on the face value or payments made for playing online games, bets in casinos, and on racing.
The tax rate was decided based on the recommendation of a Group of Ministers (GoM) that looked at taxing casinos, horse racing, and online gaming. The issue before the GoM was whether to impose a 28 per cent GST on the face value of bets, gross gaming revenue, or just on platform fees. The finance minister said the tax will be levied on the entire value. The tax on online gaming companies would be imposed without making any differentiation based on whether the games required skill or were based on chance.
When asked about the concerns that tax on the entire value would kill the industry, the minister said, "We are not killing any industry" but gaming and gambling cannot be given a treatment lesser than essential industry. "So the moral question was also discussed. It does not mean they be promoted more than essential industries," she said.
Reacting to Grover's tweet, Vivan, a Twitter user, said that is the "true tyranny of sachetisation of play-per-view in the gaming industry in India". He said the government should stop marketing itself as startup-friendly.
Jay, a portfolio manager, said it was time for high-net-worth individuals to move to UAE and save on personal income tax. "Personal Income Taxation is theft - Many countries that impose such taxes got their independence fighting against such taxation," he said.
However, there were some who backed Sitharaman. Prashant Dahibhate, an IT infra cloud professional, called it a very good move as he said most of these gaming apps are Chinese and they are taking huge money out of the Indian economy on this addiction.
Ashish Agrawal, a software engineer, said the government is more than startups for gambling. "If you know in every match of IPL, around 300 cr money is played. A lot of people waste just their time, doing all the calculations and other stuff. Good move but again the gambler will always gamble."