After the GST Council’s decision to impose 28% tax on the online gaming industry, 30 Indian and foreign investors have written a letter to Prime Minister Narendra Modi. In this letter, he says that the decision of the GST Council will harm the investment of $ 2.5 billion made in this segment.
Demand for intervention from PM Modi
In this letter written on July 21, big investors have urged the Prime Minister to intervene in the decision of the GST Council. He says that in the next 3-4 years, a potential investment of about $ 4 billion in this sector is expected to be affected. He says that this decision of GST will prove to be the heaviest tax system for the gaming sector globally.
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Investors who wrote the letter include names like Peak XV Capital, Tiger Global, DST Global, Bennett Coleman & Company Limited, Alpha Wave Global, Kris Capital, Lumikai.
‘Growth of gaming sector in India will be affected’
Investors said, ‘The decision of the GST Council will be a blow and this will rapidly reduce the confidence of investors in the Indian tech ecosystem. This will lead to a possible write-off of $2.5 billion invested in the sector.
It has been said in the letter that this will affect the growth of the gaming sector in India. Investors say that if the full value of bets is understood in such a way that ‘where GST is levied on every competition at all times, the GST burden will increase by 1,100%’.
