The government recently amended GST law for online gaming industry, making it mandatory for overseas online gaming companies to register in India from October 1. Also the tax of 28% on the full face value that was declared earlier is now imposed with retrospective effect. Entrepreneurs like Ashneer Grover has vocally opposed this tax and termed it a killer to the online Gaming Industry on various platforms.
There were earlier instances by previous governments wherein Retrospective taxes were imposed and the there were legal cases filed against the same. The companies have won such cases earlier against the government in the highest court and this move will trigger the same legal battle in the court of Law. Meanwhile the GST department is working overtime to send demand notices to the Online Gaming Industry. An estimate for more than 1 Lakh crore in Indian Rupees is in news, for the amount of notices sent already. More information awaited…