What gaming companies want from Union budget 2023: Lower GST and regulation clarity

The Indian gaming sector was in a mixed situation in 2022. The government’s recognition of the esports industry as a legal sport has brought cheers. Last December, esports was integrated into India’s leading sports sector by the government. It was recognized as part of a multisport event and came under the jurisdiction of the Department of Sports, Ministry of Youth and Sports. Over the past few years, the country’s online gaming sector has experienced significant growth. The industry is looking forward to favorable tax policies, especially in the upcoming budget. The industry expects the next budget to take some action on taxation and GST clarification.
Here’s our wishlist for two of the biggest names in the industry:
Sai Srinivas, co-founder and CEO of MPL, said:
“2023 is shaping up to be a turning point for the gaming industry. The burgeoning sector will see even more successes this year after the government released draft online gaming regulations earlier this month. , the industry wants clarity in several areas, the first is the GST mechanism for online games, and I hope the government will clarify the tax rate applicable to skill games. The first relates to the AVGC Fund, which was established as part of the AVGC Promotion Task Force announced in last year’s budget, under which access to financial support is provided to young talent. It will be a huge boost for developers and designers to accelerate their ‘Made in India’ efforts and bring Indian games to the world. We believe that the Indian online gaming industry can truly lead the global digital economy and that unified progressive policies can be the wind in its sails. “
Parvan Nandaco-founder of WinZO
“The online gaming industry is expanding rapidly and has the potential to contribute significantly to the government’s vision of a trillion-dollar digital economy. And clarity is needed: the proposed GST of 28% on the total gaming value of all games played exceeds the current 18% on gaming company commissions and has an existential impact on the segment. In addition, lowering the threshold of TDS may also hamper the growth of the industry as the current prize is over INR 10,000.TDS liability for prizes over 10,000 is It has already reached 30% under the Income Tax Act of 1961. Cumulative increases in GST and TDS would completely wipe out a domestic industry that could become the largest exporter of the next generation of consumer technology. Products made in India for the world With this budget announcement, we expect the current GST slab and TDS thresholds to continue, because a sharp tax increase will hinder growth and reduce the initial A clear and supportive tax regime not only brings revenue to the national coffers, but is of great value to the country and the gaming ecosystem in the long run. In last year’s budget, the government recognized the gaming sector as one of the potential segments for job creation in India and to realize the potential of this segment, animation, visual effects, games and We have established the Comic (AVGC) Promotion Task Force and we look forward to announcing constructive actions in that direction to boost the gaming industry,” said Paavan Nanda, co-founder of WinZO. increase.

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