'India is super ironic': Ashneer Grover criticises policymakers over 28% GST on online gaming

Hours after the Goods and Services Tax (GST) Council decided to levy 28 per cent tax on full face value of bets in online gaming, casinos and horse racing, Ashneer Grover, the ousted co-founder of BharatPe and former Shark Tank India judge, said he would love to see the government introduce 28 per cent GST and 20 per cent TCS on land purchases.

"Online gaming, horse racing and casinos will be taxed at 28 per cent (all three activities) and they will be taxed on full face value," said Union finance minister Nirmala Sitharaman at a press conference in New Delhi on July 11.

The tax on online gaming companies would be imposed without making any differentiation based on whether the games required skill or were based on chance.

Officials said the decision was taken to discourage young people from getting addicted to online gaming. Some state ministers raised concerns over how this addiction had become a menace.

A day after the announcement, Grover tweeted sarcastically, "India is super fun! Super ironic! Uncles sipping on their drinks, smoke in hand, bragging about how they made their fortunes in land speculation - by putting their cash to good use, planning their next Casino trip to Macau and passing judgement on online gaming and how its spoiling the youth. Would love to see Govt introduce 28% GST and 20% TCS on land purchases."

In a separate tweet, Grover said that in future all tech companies will be based in Singapore or Dubai given the existing regulatory framework in India. "Why judgement on online gaming now? Everyone from @imVkohli to @msdhoni to @SGanguly99 have endorsed online gaming. Why was India public/Govt/BCCI not outraged by all cricketers endorsing? Why was BCCI allowed to take @Dream11 as title sponsor?," he asked.

"You got billions in from foreign investors as FDI. Celebrated FDI inflow! Now the same investors will apply regulatory risk discount to India and funds will dry up. Not only for online games - but across sectors. Across startups," the tweet read.

Earlier, Grover, who recently launched a cricket fantasy gaming platform 'Crickpe', also said it was time for startup founders to enter politics and be represented otherwise "this is going to be spate industry after industry".    

"RIP - Real money gaming industry in India. If the govt is thinking people will put in Rs 100 to play on Rs 72 pot entry (28 per cent Gross GST); and if they win Rs 54 (after platform fees)- they will pay 30 per cent TDS on that - for which they will get a free swimming pool in their living room, come the first monsoon - not happening!" Grover said in a tweet.  

He further wrote, "It was good fun being part of the fantasy gaming industry - which stands murdered now. $10 Bn down the drain in this monsoon. Time for startups Founders to enter politics and be represented - or this is going to be spate industry after industry."

Sitharaman said the decision to levy maximum tax on online gaming and casinos was not intended to kill the industry but considering the "moral question" that it cannot be taxed at par with essential commodities.

Explaining the rationale for 28 per cent tax on online gaming and casinos, Sitharaman said it was impractical to meet the industry demand for levy of tax on platform fees as it was impossible for tax authorities to go after every player and find where all the bets have been placed.

A group of ministers (GoM) on taxation of online gaming, casinos and horse racing on whether to impose a 28 per cent GST on the face value of bets, or gross gaming revenue (platform fees) had submitted its report to the government in December last year.

Also Read: 28% GST on online gaming 'unconstitutional’, will lead to job losses, say industry experts