The co-founder and former managing director (MD) of Indian fintech firm BharatPe, Ashneer Grover has raised his grievance against the central government’s decision to levy 28 per cent GST (Goods and Service Tax) on the commissions that online gaming companies collect from their customers. 

Grover took the issue to Twitter to raise his objections against the decision. In his tweet, the popular shark from the first season of the entrepreneurship-driven show ‘Shark Tank India,’ wrote– “RIP - Real money gaming industry in India… It was good fun being part of the fantasy gaming industry - which stands murdered now. $10 Bn down the drain in this monsoon.”

 

RIP - Real money gaming industry in India. If the govt is thinking people will put in ₹100 to play on ₹72 pot entry (28% Gross GST); and if they win ₹54 (after platform fees)- they will pay 30% TDS on that - for which they will get free swimming pool in their living room come…

— Ashneer Grover (@Ashneer_Grover) July 11, 2023

“If the govt is thinking people will put in Rs 100 to play on Rs 72 pot entry (28% Gross GST); and if they win Rs 54 (after platform fees)- they will pay 30% TDS on that - for which they will get a free swimming pool in their living room come to the first monsoon - not happening,” he further added. 

Grover also suggested that start-up founders now need to step into politics and raise their voices to influence policymaking. Otherwise, decisions like this will spate industry after industry. 

The new GST rule can create an impact on Ashneer Grover’s latest venture CrickPe, a cricket-focused fantasy application.

Earlier this week, the GST Council announced a 28 per cent tax imposition on full face value on bets that include online gaming, casinos and horse racing. These platforms earlier used to provide 18 per cent GST.