• Notification Date: 19-07-2023
• Notification No: N/A

Rajeev Chandrasekhar to Approach GST Council for Reconsideration of New Gaming Tax

Rajeev Chandrasekhar, Minister of State for Electronics and Information Technology, responding to criticism regarding the 28 per cent goods and services (GST) tax on online gaming, conveyed that he will "go back to the GST council and may request it for consideration on the new regulatory framework". 

The GST Council is not the Indian government. All state governments are represented on the council, making it a federal organisation, he added. 

"A GST framework has been developed by state governments and finance ministries. While we may disagree with the findings, we have to recognise that the process of developing a framework has already begun as of January 2023," he remarked at a forum on CNN-News18. 

Underlining the sustainable evolution of frameworks in the digital space, the MoS commented, "I believe it is better to slowly progress and evolve sustainable frameworks rather than rushing to react to industry or startup anger, which can lead to downstream mistakes. Our Prime Minister's vision for the digital space is clear: to ensure that everything we do aligns with the perspective of a future India. The laws and rules undergo a detailed process, and only after thorough consultation do, we onboard people into online gaming. It is important to prioritise doing it right rather than doing it fast. 

The industry leaders have expressed their discontent with this decision. Former BhartPe founder Ashneer Grover also slammed the Central government on Tuesday for imposing a 28 per cent Goods and Services Tax (GST) on online gaming. "The Centre's decision will simply "murder" the $10 billion online gaming industry, and it is now time for startup founders to enter politics," Grover added.