BharatPe founder Ashneer Grover strongly criticised the recent decision of the Goods and Services Tax Council to impose a 28% GST on online gaming at the full value. The Shark Tank India fame expressed his disappointment, saying that it is crucial for startup founders to actively engage in politics and ensure adequate representation. Ashneer Grover said that the move will murder the fantasy gaming industry. Ashneer Grover had recently launched his own fantasy gaming named Crickpe which allowed users to create a virtual team of the best in-form real players, join the contests, and earn points per their actual game performance.
“RIP - Real money gaming industry in India. If the govt is thinking people will put in ₹100 to play on ₹72 pot entry (28% Gross GST); and if they win ₹54 (after platform fees)- they will pay 30% TDS on that - for which they will get free swimming pool in their living room come the first monsoon - not happening ! 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," Ashneer Grover said in a tweet. "GST Council has decided that online gaming, casinos, and horse racing will be taxed at 28 percent at the entry point on the full face value of bets," West Bengal finance minister Chandrima Bhattacharya while informing about the decision of GST council. The decision of the GST council will be a huge dent for the fantasy gaming industry which was expected to cross ₹25,000 in revenue by 2027. 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.