The Federation of Indian Fantasy Sports (FIFS) has appealed to the government to refrain from imposing a 28 percent Goods and Services Tax (GST) on online gaming retroactively, as it is dissuading potential investors from participating in this flourishing sector.
In an August meeting, the GST Council determined that online gaming should be subject to a 28 percent GST based on the face value of bets at the entry level. Following this decision, GST authorities have issued tax recovery notices to several online gaming companies.
Joy Bhattarcharjee, the Director General of the Federation of Indian Fantasy Sports (FIFS), addressed this matter at the 'TIOL Tax Congress 2023.' He mentioned that the GST rate issue has been largely settled, with the industry's main concern being the retrospective nature of the law, as it is discouraging potential investors from entering this thriving industry. He stated, "However, the retrospectivity of GST provisions poses a significant challenge for us. Carrying a 'contingent liability' will deter the investors crucial for our growth phase."
Principal DG Anil Kumar Gupta of the Directorate General of GST Intelligence (DGGI) also spoke on the matter during the event. He clarified that the government's objective is not to hinder the growth of the industry but to address a long-standing issue. Gupta emphasized that the decision was not made lightly and added, "Furthermore, it will be subject to review after six months, during which the government will assess the situation and make a decision accordingly."