Top gaming firms urge government not to raise GST rate to 28%

A group of top online gaming firms has sent a representation through the FICCI Gaming Committee to the Central Board of Indirect Taxes & Customs (CBIC), urging the body not to hike the GST rate for the sector to 28% from 18% as suggested by ministers’ panel.

"This (recommendation) is a major shift from the current tax regime of charging GST on the platform fee/ gross gaming revenue (GGR) at the rate of 18%," the companies wrote in a letter, which the FICCI Gaming Committee submitted to the board.

"If the changes recommended by the GoM (group of ministers) are given effect, then the online gaming industry will be adversely impacted," it added.