Reetu | Oct 3, 2023 |
AIGF writes to Finance Ministry to defer rollout of GST Notification on Online Gaming
The All India Gaming Federation (AIGF) has reportedly approached the finance ministry, requesting that the 28% GST (Goods and Services Tax) notification on online gaming, which was set to take effect on October 1, be postponed.
This action is being taken in response to concerns raised about the implementation of the amended GST law provisions for taxing e-gaming, casinos, and horse racing.
The finance ministry issued a notification on Saturday, announcing October 1 as the date for implementing the amended GST law provisions.
The AIGF has urged the revenue secretary to postpone the amendment notice until all states amend their respective State GST laws in accordance with the Supreme Court of India’s decision.
In a letter dated 30 September to Revenue Secretary Sanjay Malhotra, AIGF CEO Roland Landers stated that these notifications are a “severe blow to the creed of ‘one nation, one tax.'” and will rip “the fabric of GST” apart.
It may also “open the floodgates of unilateral actions by various states in various other aspects of GST in the future,” he said.
The AIGF claims to have over 120 members, which include skill-gaming companies and game developers from all formats and genres. Mobile Premier League (MPL), Gameskraft, Nazara Technologies, Deltatech Gaming, Head Digital Works (A23), and WinZO are among its prominent members.
The industry group has asked that the new tax regime be delayed until all states pass their respective amendments in accordance with the GST scheme and until the Supreme Court issues its decision.
According to sources, approximately 15 states have yet to change their State GST laws, and online gaming companies registered in these states may face difficulties due to a lack of uniformity in the statutory framework.
The AIGF has stated that adapting to these significant operational changes will be a significant challenge for online gaming companies, particularly given the lack of consistency in the legal framework across states.
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