Online gaming investors say 28% GST will make business ‘unviable’

Large investors in India’s online gaming sector are planning to come together and write to the government, raising concerns about the decision to levy 28% GST on the full face value of the bets for real money online games, people aware of the discussions said.

These investors are likely to caution the government that this steep tax could make the industry unviable, while disproportionately hurting small startups, one of the people briefed on the matter told ET. They had previously demanded that GST be levied on the gross gaming revenue, which is the platform fee that the companies collect for facilitating the games, and not on the full face value, or the contest entry amount.