Delhi govt to demand withdrawal of 28 pc tax on online gaming industry at GST meet: Atishi

Delhi Finance Minister Atishi criticised the Centre over the imposition of 28 per cent tax on online gaming industry, adding that the Council should consider withdrawing the tax evasion notices

New Delhi: Ahead of the 52nd Goods and Services Tax (GST) Council meeting on Saturday, Delhi Finance Minister Atishi criticised the Centre over the imposition of 28 per cent tax on online gaming industry, adding that the Coucil should consider withdrawing the tax evasion notices on companies in the sector.

In an address ahead of the GST Council meeting, which is currently in progress in the national capital, Atishi said,

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“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 convenes periodically to deliberate on matters related to the GST regime, including tax rates, policy changes, and administrative issues.

The 52nd meeting is aimed at discussing critical issues affecting the Indian tax system and finding collaborative solutions.

The meeting outcomes are expected to have a significant impact on the country’s economy going forward.
It’s part of the government’s ongoing efforts to refine the GST system to enhance efficiency and promote economic growth.

The decisions and recommendations arising from the 52nd GST Council meeting will be closely watched by various stakeholders, including businesses, policymakers, and the general public, as they have the potential to influence taxation, trade, and overall economic dynamics in the country.