Atishi Assures Help to Ashneer Grover, Says She Will Ask GST Body To 'Reconsider' Tax on Online Gaming

Atishi Marlena, Delhi minister and Aam Aadmi Party (AAP) leader, has given her assurance to entrepreneur and influencer Ashneer Grover that she will advocate for the GST council to review its decision on imposing a 28 per cent tax on online gaming.

In a post on social media site X, Atishi wrote: “Thanks for flagging the problems with this decision @Ashneer_Grover. Today the @GST_Council will be meeting again, and I will be asking them to reconsider the decision to impose 28% GST on Online Gaming. Delhi Govt is clear that promoting start ups is the only way our economy will grow!”

Grover has been very vocal against the GST council’s decision on imposing 28% tax from the day it was announced. According to the entrepreneur, the spike in tax will “kill the industry”.

Blaming the government over it’s new policy, Grover wrote: “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! (sic)”

“It was good fun being part of the fantasy gaming industry, which stands murdered now. $10 Bn down the drain in this monsoon,” he added.

In a video, which Grover had earlier shared on his Twitter handle, he said that till now, there is an 18 per cent GST on the gaming company but now the government intends to impose a 28 per cent GST on the gamer.

Ashneer Explained the Math

Explaining the math, Ashneer Grover said, “Let’s understand the math of it through an example. Let’s say, two people play a Rs 100 game by putting Rs 50 each. The one who has lost will lose the entire Rs 50. But, the one who won will get a part of Rs 50 as a profit. Till now, there was a GST of Rs 1.5, which will now increase to Rs 22 after the imposition of the 28 per cent GST. It is an increase of 1,300 per cent, not 10 per cent. If we talk about GST plus TDS, it used to be Rs 13.5 till now. This will now be doubled to Rs 28.”

“This whole amount will be deducted from the gamer’s profit, who earlier used to earn Rs 28 but will now earn just Rs 14,” Grover, who is also the founder of online cricket game CrickPe, said in the video.

He emphasized that even if the gaming industry contributed its entire revenue, it would not be enough for compensation. Thus, this has evolved into an existential problem for the gaming industry. “After all, why would gamers participate if the profits are meager? If gamers refrain from playing, it would significantly impact the industry’s revenue generation, ultimately affecting the government’s tax revenue as well,” explained Grover.