Tag: gaming

28% GST: The beginning of the end for MSME gaming businesses in India?

On the other end of the spectrum, larger players are grappling with losses by implementing as much as 50 percent reductions in marketing expenditures. This is only the beginning, said experts, adding, there will be more pink slips, restructurings and shutdowns. (Representative Image: Michał Parzuchowski via Unsplash)

The gaming businesses are only beginning to see layoffs and shutdowns. There will be more, say experts.

IQOO appoints Shwetank Pandey as chief gaming officer

Shwetank Pandey was appointed after a selection process that spanned across criterions of gameplay, gaming knowledge, and personality and communication skills. (From left to right: Shwetank Pandey and Nipun Marya)

In addition to the chief gaming officer role, iQOO has also appointed two zonal CGOs to the dynamic team. Aojesh Shrivastava from Delhi and Battu Nikhil Reddy (Shoutout YT), Hyderabad.

Online gaming platforms face Rs 45,000-crore tax demand

Earlier this month, the Centre filed a special leave petition in the Supreme Court appealing against the Karnataka High Court ruling quashing the tax demand notice of the DGGI imposed on Gameskraft. (Representative Image: Carl Raw via Unsplash)

The Directorate General of GST Intelligence (DGGI) is likely to issue notices to these companies soon.

Gaming major Krafton looking for deep-tech Indian firms for localised content

Sean Hyunil Sohn, CEO, Krafton India, says, "KRAFTON is committed to fostering growth within the Indian gaming and tech ecosystem. We have already invested approximately $140 million in 11 Indian-startups over the last two years, and we believe it to be the right time to evaluate, and announce our commitment of investing an additional $150 million in the Indian startup ecosystem over the next 2-3 years."

“We believe in the power of Indian content and the potential of Indian IPs” says Krafton India’s CEO Sean Hyunil Sohn.

Krafton to invest $150 million in Indian startup ecosystem in next 2-3 years

Bajaj Auto currently has 80 percent market share in the ICE segment. This serves as a substantial and efficient distribution platform for their electric offerings. (Representative Image: Annie Spratt via Unsplash)

Beyond game development studios, Krafton’s investments span across complementary sectors, including, Esports, multimedia entertainment, content creation and audio platforms.

28% GST impact: Mobile Premier League lays off 350 employees

Scaler had earlier said in a media interview, that it increased its workforce by over 150 percent to around 2000, as compared to the 800 employees it had in February 2022. (Representative Image: Tarik Haiga via Unsplash)

The announcement of higher tax rates for online gaming had the industry anticipating a significant financial burden. This move has already led to layoffs, starting with MPL.

Explained: What are the GST Council’s tax recommendations for online gaming?

In the letter, Chandra alleged that hasty steps are being taken in the merger process and the SEBI investigations do not bother him as much as the timing of the new notice. (Image via Twitter)

The 51st GST Council meeting on August 2 approved 28% GST on online gaming on full face value, clearing doubts and confusion surrounding the matter.

GST Council clears the way for taxing offshore gaming companies; experts divided on its impact

For quite some time now, companies like 1XBet, DafaBet, Fairplay, Parimatch, and Betway have been ramping up their advertising efforts in India, coinciding with the action-packed events like Indian Premier League cricket season, World Cup and others. In fact, they have been using the GST chaos for moment marketing purposes as well. Platforms like Fairplay have been using influencers to promote features such as '24X7 winning withdrawal, no GST, and referral code bonuses’.

The council recommended inserting a specific provision in the IGST Act, 2017, to provide for liability to pay GST on the supply of online money gaming by a supplier located outside India.

GST Council decision on online gaming: Industry voices concerns and hopes for future review

The Supreme Court recently stayed the Karnataka High Court's judgment that had quashed the GST department's show-cause notice to Gameskraft in May 2023. (Representative image by Michał Parzuchowski via Unsplash)

While re-strategising business models might be an option for the larger players, for the smaller online gaming enterprises, the weight of taxation could prove to be insurmountable as per stakeholders.

MSMEs will no longer be able to survive in the face of the increased tax liability of 400-500 percent: AIGF

In the letter, Chandra alleged that hasty steps are being taken in the merger process and the SEBI investigations do not bother him as much as the timing of the new notice. (Image via Twitter)

E-Gaming Federation (EGF) and FIFS (Federation of Indian Fantasy Sports) said the burdensome increase in GST will set the Indian online gaming industry back several years.