<p><em>By Ruchi Bhatia and Chiranjivi Chakraborty</em></p>.<p>More than 125 companies from India’s nascent online gaming industry warned the government that the sector could face a massive loss of investments and jobs following a decision by the Goods and Services Tax Council to increase tax rates sharply.</p>.<p>Earlier this week, the council imposed a levy of 28 per cent at entry points on full face value for online gaming. It’s a blow to an industry which caters to over 420 million Indians, a customer base bigger than the population of the US. </p>.<p>Stocks of gaming firms such as Nazara Technologies Ltd. and Delta Corp Ltd. declined following the move. </p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/national/online-gaming-firms-relocating-to-avoid-tax-will-be-risky-1236765.html" target="_blank">Online gaming firms relocating to avoid tax will be 'risky'</a></strong></p>.<p>“This would potentially have devastating implications” including the shutdown of businesses for startups and small- and medium-sized enterprises, according to a letter signed by 127 Indian companies including Nazara Tech. </p>.<p>They said the 28 per cent levy rate should be on platform fees charged by companies to users instead of the full deposit value, which “poses a significant threat to the industry’s continuity”.</p>.<p>India’s online skill gaming industry has an enterprise value of $20 billion (Rs 1.64 lakh crore), after having raised over $1.5 billion between January 2021 and June 2022, according to the letter. The industry claims to employ around 100,000 people with revenues of $2.5 billion, forecast to double by 2025.</p>
<p><em>By Ruchi Bhatia and Chiranjivi Chakraborty</em></p>.<p>More than 125 companies from India’s nascent online gaming industry warned the government that the sector could face a massive loss of investments and jobs following a decision by the Goods and Services Tax Council to increase tax rates sharply.</p>.<p>Earlier this week, the council imposed a levy of 28 per cent at entry points on full face value for online gaming. It’s a blow to an industry which caters to over 420 million Indians, a customer base bigger than the population of the US. </p>.<p>Stocks of gaming firms such as Nazara Technologies Ltd. and Delta Corp Ltd. declined following the move. </p>.<p><strong>Also Read | <a href="https://www.deccanherald.com/national/online-gaming-firms-relocating-to-avoid-tax-will-be-risky-1236765.html" target="_blank">Online gaming firms relocating to avoid tax will be 'risky'</a></strong></p>.<p>“This would potentially have devastating implications” including the shutdown of businesses for startups and small- and medium-sized enterprises, according to a letter signed by 127 Indian companies including Nazara Tech. </p>.<p>They said the 28 per cent levy rate should be on platform fees charged by companies to users instead of the full deposit value, which “poses a significant threat to the industry’s continuity”.</p>.<p>India’s online skill gaming industry has an enterprise value of $20 billion (Rs 1.64 lakh crore), after having raised over $1.5 billion between January 2021 and June 2022, according to the letter. The industry claims to employ around 100,000 people with revenues of $2.5 billion, forecast to double by 2025.</p>