‘New GST burden may make biz unsustainable’
New Delhi: Gaming companies have been grappling with the swift changes in the newly imposed GST tax liability on them. In the Supreme Court, there are two cases, one for the new GST tax which the industry has been lobbying against and another which is opposing a retrospective tax liability on the GST. Amid this, one company that functions as a business unit of Baazi Games—SportsBaazi—said there could be a time when gaming companies would find it unsustainable to not be able to pass on the tax burden to the consumer. For now, their business, the company’s co-founders, Saurabh Chopra and Puneet Dua, said has had to pivot the business model to creating additional revenue streams, to mitigate the impact.
“The GST hike hasn’t helped the industry but because we have been growing, our growth has sustained the business. We have not passed on the tax liability yet and the impact on the consumer is minimal. But the business needs to make sense and we do plan to pass on the tax burden to the customers and optimise it gradually and do it in a fashion that the consumer engagement is not impacted," said Chopra.
