Informed GST decisions crucial for sustainable growth of domestic online gaming industry, says SOGI
Stating that a 28 per cent GST on online gaming is badly impacting the online games industry in India, the Skill Online Games Institute (SOGI) on Tuesday urged the Centre and the Goods and Services Tax (GST) Council to take an informed decision on rates so that the domestic industry can grow on a sustainable basis and compete with global players.
“The government had agreed to review the GST rates on online gaming. Finance Minister Nirmala Sitharaman had assured us of a GST rate review after the elections. I am urging that don’t do the review before you have full information on the industry in India and worldwide,” said SOGI Founder President Amrit Kiran Singh.
Singh said that after 28 per cent GST was levied on online gaming last October, the industry in India suffered a setback as many domestic players left due to the impact of the high taxation.
According to SOGI, the Indian online games industry currently worth over USD 3.5 billion and has grown at 35 per cent CAGR in the last five years. The industry, which employs two lakh people and has the potential to grow five-six fold in the near future.
