Indian Games Industry Calls for Distinction From Real Money Games in Letter to PMO Over 'Online Games' Tax

gadgets.ndtv.com:

Earlier this month, the Goods and Services Tax (GST) council implemented a 28 percent tax on online gaming, casinos, and horse racing. Finance Minister Nirmala Sitharama, on July 11, announced the new taxation policy, adding that tax would be levied on the full face value of transactions, which included the amount being wagered or deposited for the game. Since the announcement, industry stakeholders, which include investors, gaming companies and others, have expressed concerns about the impact of the 'online gaming' tax on businesses, industry jobs, and foreign investment.

Now, over 45 video game companies in India, representing the games industry in the country, have written to the Prime Minister's Office, Ministry of Electronics and Information Technology, and the Ministry of Information and Broadcasting in a joint letter to address the ambiguity surrounding 'online gaming', drawing a clear distinction between video games and real money gaming/ fantasy sports. The letter requests the Indian government to implement a distinct recognition of the games industry in India, and to avoid video games and e-sports from being clubbed with real money gaming and online fantasy sports.

Signatories to the letter, which include Indian video game companies like SuperGaming, Outlier Games, GameEon Studios, and more, have clarified that the recently announced 28 percent GST on online gaming does not affect video games. “Indian Video Games Industry (valued at $812 million — about Rs. 6,660 crore — as of 2022) are unaffected by the recent developments on the GST as these sectors continue to be taxed at 18 percent and supported by the Indian government through the planned AVGC-XR Policy,” the consortium of game companies said in a press