Atishi, the finance minister for Delhi, criticized the Center for taxing the online gaming industry at a rate of 28% before the 52nd meeting of the Goods and Services Tax (GST) Council on Saturday. She also suggested that the Council consider rescinding the tax evasion warnings it had issued to enterprises in the field.
In an address ahead of the GST Coucil meeting, which is currently in progress in the national capital, Atishi said, “Despite the opposition of the Delhi government, a 28 per cent tax was imposed on the online gaming industry. Even before this tax was imposed, the GST Council sent tax evasion notices worth Rs 1.5 lakh crores to the online gaming industry over the last six years. I am going to take up this issue at the meeting today. Will demand the withdrawal of tax notices to the online gaming sector.”
She added that the online gaming is considered a “sunrise sector” but the decisions being made and implemented by the GST Council will significantly and negatively impact the industry.
“The online gaming sector employs over 50,000 people. Online gaming is considered a sunrise sector in the startup sector, but the GST Council recently took a decision to impose 28 per cent GST on online gaming. It will have a huge impact on this industry,” she added.
Union Finance Minister Nirmala Sitharaman is presiding over the 52nd GST Council meeting at the Sushma Swaraj Bhawan in New Delhi on Saturday.
The meeting is being attended by Union Minister of State for Finance, MP Poonia, along with Finance ministers of various States and Union Territories (with Legislature), as well as senior officials from both the Union government and the states.
The GST Council meets on a regular basis to discuss problems pertaining to the GST regime, such as tax rates, policy modifications, and administrative concerns. The 52nd meeting’s objectives are to examine significant problems affecting the Indian tax system and work cooperatively to develop solutions. The meeting’s decisions are anticipated to significantly affect the nation’s economy moving ahead.
The move is a part of the government’s ongoing attempts to improve the GST system’s effectiveness and spur economic growth. Businesses, policymakers, and the general public will be paying careful attention to the conclusions and recommendations reached at the 52nd GST Council meeting because they could have an impact on the nation’s taxation, trade, and overall economic dynamics.
