$3.5 bn domestic online gaming industry seeks GST adjustment to help thrive

The Indian online gaming industry, valued at over USD 3.5 billion on Monday urged the government to reconsider levying 28 per cent GST on Contest Entry Amount' (CEA) in order to save the domestic industry.

The Skill Online Games Institute (SOGI) argues that this high tax rate is stifling domestic companies and hindering the industry's potential for significant growth.

"The shift from 18 per cent on gross gaming revenue to CEA in October last is not just a financial burden on legitimate domestic platforms but also unintentionally bolstered illegal offshore betting and gambling activities," SOGI Founder President Amrit Kiran Singh said.

"There is a need for the re-assessment of GST policy to curve the unintended consequences of fostering illegal gambling and to support the growth of the domestic online gaming industry," he said.

Singh highlighted concerns that the high tax rate is driving Indian companies out of business, while foreign companies, particularly those from China where