The online gaming industry has experienced exponential growth in recent years, attracting millions of players globally. However, gaming industry has been left in shock by the recent proposal to impose 28% GST (Goods and Services Tax) on online games. Amid all the hullabaloo, an Indian pro gamer in a tongue and cheek response, has responded to statements made by the revenue secretary of India, that labelled gaming as being against social values.
The letter went on to clarify the distinction between games of skill and games of chance. The letter noted, “You term ‘gaming’ as ‘betting’. This, sir, is completely unwarranted and false. You are very well aware that betting is banned in India. Betting is completely a game of chance. We, the gamers of India, play games of skill, like chess, poker, and hundreds of other games. Please do not insult us by calling us criminals.”
Responding to the revenue Minister’s statement that “It (28 per cent GST) may also have an economic rationale because people will hopefully use this time in more productive activities”, the letter drew attention to the global economic significance of the gaming industry. “Sir, are you saying that gamers are unproductive? Gaming globally is a 250 billion dollars economic activity. Certainly does not look “unproductive”. We, the gamers, are hardworking and law abiding young people of India. We fully support our beloved Prime Minister Narendra Modi’s vision of the digital economy contributing a substantial part of India’s proposed 5 trillion dollars economy,” the letter read. More than 125 companies from India’s online gaming industry warned the government that the sector could face a massive loss of investments and jobs following a decision by the Goods and Services Tax Council to increase tax rates sharply.
The ongoing controversy arises at a time when India's gaming industry is experiencing remarkable growth. Reports indicate that the number of gamers in India has surged to over half a billion in FY22, a significant increase compared to the previous year's 450 million. Moreover, India has emerged as the largest consumer of mobile games globally in FY22, with an astonishing 15 billion downloads throughout the year.