The GST Council's decision to put gaming companies within the 28% tax bracket could have a knock-on impact on the larger fintech and the regulatory tech ecosystem.

This is because fintech companies and regtech companies that provide services to gaming companies will also be subject to the 28% GST. This could lead to an increase in the cost of these services for gaming companies, which could be passed on to users in the form of higher fees.

Additionally, the higher GST could also lead to a decrease in the number of gaming companies that operate in India, as they may find it more difficult to compete with foreign companies that are not subject to the same tax rates.

Industry estimates suggest that around 5% of the overall volumes for the regulatory compliance and fintech industry could be coming from gaming applications. This means that the gaming sector is a significant contributor to the fintech and regtech ecosystem.

The 28% GST on gaming will push up operational costs for many platforms, which will be passed on to users. This could lead to a decrease in the amount of money being bet through these platforms, as users may be less willing to pay higher fees.

However, it is important to note that the real impact of the GST on the gaming sector will only be seen once the systems are put in place and there is more clarity. It is possible that the impact will not be as severe as some experts are predicting.

Overall, the GST Council's decision to put gaming companies within the 28% tax bracket is a significant development that could have a major impact on the gaming sector and the fintech and regtech ecosystem.

It is important to monitor the situation closely to see how the industry adapts to the new tax regime. Here are some additional thoughts on the impact of the GST on the gaming sector:

The higher GST could lead to a decrease in the number of gaming companies that operate in India. This is because foreign gaming companies that are not subject to the same tax rates will have a competitive advantage.

The higher GST could also lead to a decrease in the amount of money being bet through gaming platforms. This is because users may be less willing to pay higher fees.

The higher GST could also lead to a decrease in the number of gaming jobs in India. This is because gaming companies may need to cut costs in order to comply with the new tax regime.

Overall, the GST is a major challenge for the gaming sector in India. However, the industry is resilient and it is likely to adapt to the new tax regime. It will be interesting to see how the industry evolves in the coming months and years.