The Federation of Indian Fantasy Sports (FIFS) on Wednesday urged the government not to impose a 28% GST on online gaming with retrospective effect, as it is discouraging investors from putting their money into this industry.
The GST Council in its meeting in August held that online gaming would attract 28 per cent GST on the face value of bets at entry level. Pursuant to the decision, the GST authorities have sent notices to several online gaming companies for recovery of taxes.
Speaking at the 'TIOL Tax Congress 2023', Joy Bhattarcharjee, Director General, Federation of Indian Fantasy Sports (FIFS), said, “The issue of GST rate is more or less settled and the only issue that the industry have is retrospective provision of the law because it is discouraging investors to put in their money into this booming industry," he said.
"However, retrospectivity of GST provisions is a very difficult blow for us. Having 'contingent liability' will spook away the investors whom we need during this growth phase," he added.
Anil Kumar Gupta, Principal DG, Directorate General of GST Intelligence (DGGI), said, “The government's intention is not to discourage a rising industry, but to settle an issue lingering on from long time and the government is quite open to look into the progress after some time. It was not an easy decision...moreover, it will be up for review after six months, wherein depending on the scenario, the government will take a call," Gupta said.
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