Here’s what Delhi minister Atishi replied to Ashneer Grover’s tweet

Delhi finance minister Atishi, who is also a member of Union Minister Nirmala Sitharaman led -GST council on Wednesday assured ex-Bharat pe co-founder Ashneer Grover that she will urge the council to again think of levying tax on online gaming.

Replying to the decision of the GST council, the Delhi minister tweeted, “Last month the @GST_Council decided to impose a 28% tax on Online Gaming. Many entrepreneurs and investors from the start-up ecosystem opposed this decision, as they felt that it would destroy this fast-growing industry. Yesterday I met several representatives from the Online Gaming industry to understand their concerns. Today the @GST_Council is meeting again, and I will ask the Council to reconsider its decision. Promoting start-ups and entrepreneurship is the only way our economy is going to grow!”

Atishi’s reply to Ashneer Grover

Replying to Ashneer Grover, the Delhi minister wrote, “Thanks for flagging the problems with this decision @Ashneer_Grover. Today the @GST_Council will be meeting again, and I will be asking them to reconsider the decision to impose 28% GST on Online Gaming. Delhi Govt is clear that promoting start-ups is the only way our economy will grow!”

Many entrepreneurs, including Ashneer Grover, the co-founder of Bharat Pe, also opposed the decision. Taking it to Twitter, he mentioned, “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 a free swimming pool in their living room come the first monsoon – not happening ! It was good fun being part of the fantasy gaming industry – which stands murdered now. $10 Bn down the drain in this monsoon. Time for startups Founders to enter politics and be represented – or this is going to be spate industry after industry.”

The gaming industry opposed the decision and said that it will lead to many challenges. According to the tax levied, the user has to pay 28% of the tax on each 100, he spends.

On 11 July, the GST Council approved levying a 28% tax on the full-face value of bets in online gaming, casinos, and horse racing. The council led by Finance Minister Nirmala Sitharaman is expected to meet on Wednesday and it is anticipated that it will shed light on taxes on online gaming.