GST Council's 28% tax triggers job losses in India's real-money gaming sector
The Goods and Services Tax (GST) Council's move to impose a 28 percent tax on player deposits in real-money games has led to a significant job erosion in India's rapidly growing skill gaming industry, as per a joint report by Ernst and Young (EY) and the US-India Strategic Partnership Forum (USISPF).
The report is based on the findings of a survey conducted by USISPF of 12 companies in the sector across various stages of operations. It notes that the participants are relevant stakeholders from the online skill-gaming industry, but doesn't disclose any specific names.
About four of the surveyed companies have laid off up to 50 percent of their workforce, while one company had to lay off more than 50 percent of the people and an early-stage startup had to shut down its operations, the report said.
Four companies said they have stopped hiring but have not laid off any employees. Overall, about 10 companies faced significant headwinds on employment creation, it said.
