nice to see our government going along with the gambling = gaming veil as well

Procurement

For a quick moment read it as gaming nuts 412% 😂

Program Manager

Finance Minister Nirmala Sitharaman announced a 412% revenue increase from online gaming, totaling ₹6,909 crore in six months.  The 28 percent GST on skillbased and chancebased online games was imp...

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- Finance Minister Nirmala Sitharaman announced a 412% revenue increase from online gaming, totaling ₹6,909 crore in six months.
- The 28 percent GST on skill-based and chance-based online games was implemented on October 1, 2023.
- Casinos also saw a 30 percent revenue increase.
- India, with 442 million gamers, is the second largest market globally, and the industry is expected to grow significantly.
- Despite the revenue boost, the industry faces challenges, including higher tax burdens and reduced margins. 

 Source: [Economic Times](https://economictimes.indiatimes.com/news/economy/finance/gst-on-online-gaming-resulted-in-412-more-revenue-in-six-months-netted-6909-crore-says-finance-minister-sitharaman/articleshow/113198707.cms)

GST on Online Gaming Nets 412% More Revenue in Six Months

Journalist

GST on Online Gaming Nets 412% More Revenue in Six Months- Grapevine

Welcome to Indian Startups's Private Community

Folks at Dream 11, Games24×7, Junglee, etc how's the environment in the office? Have there been any updates from the leadership regarding the direction they'd be taking? 
As of now, here at Gameskraft it's an elephant in the room with everybody in denial, talking about how we can still survive and no updates from leadership yet.

Thoughts on 28% GST for online gaming?

I’m from a esports gaming company. Spoke to my CEO regarding this today morning.  
  
 This move is completely short sighted and reinforces how bad policymakers are in our country. This might kill small companies in the short/medium term altogether.  
  
 Gaming companies based out of India that were looking to raise funding will have the hardest time doing so going forward. 28% GST + income tax on the company end. ₹100 deposited directly being reduced ₹72 in your account. The government ends up earning almost 50% from players AND the company.  
  
 I’m seeing boomers applaud this move as they want the new generation to “focus more on less time wasting activities”, but they don’t know anything about the numbers of the gaming industry outside of India. Indian esports and gaming is just at the beginning of its rise. This move sets it back in terms of investment and revenue heavily.  
  
 Luckily, we’ll have an entity setup in the UAE soon, and that entity will in a few months become the holding entity, with the Indian entity being a subsidiary. Many more companies will do this, and the government will see how this increase in taxes backfires because companies will just create holding entities outside of India :)

Product Head

Product Manager

Online gaming startups are among those rare breeds which were profitable . With this move, even they will be forced to do layoffs..

28% GST on online gaming. Tough times for dream11, mpl etc

Software Engineer

Looks like the gaming federation is trying really hard to lobby government and get the decision reversed. Any thoughts?

Earlier this week, the 50th GST Council meeting decided that a 28% GST will be levied on the full face value of online gaming.

Nazara, Winzo, and others write to govt to protest 28% GST on ‘online skill gaming’

Analyst

In a recent interview following the presentation of the Interim Budget, Sanjay Kumar Agarwal, Chairman of the Central Board of Indirect Taxes and Customs, disclosed a remarkable surge in Goods and Services Tax (GST) collections from online gaming.

Surge in GST Collections from Online Gaming Signals Growth in Sector - Insider99

What's your view on GST on online gaming (aka satta), was legalizing it was good idea?

Software Developer

Welcome to Personal Finance's Private Community

Seems like since last year the focus of government has shifted from actually making beneficial policies to enable innovation and growth of India to just collecting taxes blindly. 

They just want to harvest tax in as many ways possible and kill the middle class person.

First it was crypto. 

Then us salaried individuals started receiving notices. 

Then they levied 28% GST on online gaming. 

Now they are also checking proofs for HRA allowance and other stupid stuff which wasn't done before. 

I was wondering why there is a sudden increase in such incidents? Is the government hiding something? Are they running out of money?

Or are they just smoking weed just like us and making stupid rules?

Nirmala tai is looting us

This government’s primary intention is to collect more and more taxes in whatever mean’s possible. They don’t give a f**k about anything. And then will brag every month/quarter about record GST collection! This government is pathetic to say the least! No accountability and arrogance is at its peak. We have come to a point where we can’t even question the government otherwise you will be termed as anti national.

Hey viners
Not heard a lot about gaming startups after the first 2-3 weeks of that new GST rule. How are the gaming startups like Dream11, Games24, Junglee, Zupee doing?
Has there been in shift in revenue model?

Gaming Startups post GST rule

Consultant

Becoz of GST many companies are pivoting or changing gaming algo to make players loose to pay GST. Game of chances are being launched

1. MPL , Launched betting games 
2. Zuppee , teen patti and betting games 
3. Games craft , rummy circle rigged card distribution
4. Tradex , Probo Mostly will shut down 
5. Rummy apps , Better opinion , tamasha and other small companies are planning to shut down RMG part
6. Nazara acquired RMG companies are unable to operate 
7. Octro is closing the RMG app. 

What more ? If anyone knows do share up.

RMG (Real money Gaming) companies going dead

Hoping they all close ASAP. 28% GST  is not enough. It should be higher at 50%.

Westerners used Internet and computing to design better planes and build better engines, our guys are using it to play cards.

Founder

From what I hear from a friend who is aware of the leadership discussions, MPL might be looking to lay off close to 50% of its workforce and shut down most of its other BU’s to consolidate by October. This would include folks even till the SVP levels. This might be one of the first pins to fall with the 28% GST rule kicking in by October. Dark days ahead for online RMG  industry in India

Massive layoffs coming up at MPL

companies like MPL should not exist in the first place. Why promote gambling?. not for any moral reasons,  if someone wants to gamble, let them go to a casino and do it. Instead, making it easier for some one to gamble at  any time/anywhere is unacceptable.

Gaming industry is fucked big time

MPL layoffs 50% of their indian workforce ~ 350 employees
After the 28% GST rule

GST on Online Gaming Nets 412% More Revenue in Six Months

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