28% GST slab doesn't apply to Gaming and Esports, explains Esports Federation President

The 50^th meeting of the GST council recommended 28% uniform taxation on “casino, horse racing, and online gaming.” The Indian Esports and Gaming community was among the first ones to voice out their concerns. However, Vinod Tiwari, the President of the Esports Federation of India has now clarified that the Esports and Gaming sector will not be affected by the 28% GST slab.

The GST Council declared that there would be a distinction between ‘a game of skill and a game of chance’. Tiwari emphasised in his statement that, “28% GST applies only to iGaming sector, including Real Money Gaming (RMG), fantasy sports, teen patti, rummy, and poker which are categorized under gambling or betting in the rest of the world.” He further added that “Contrary to some media reports, this GST is neither applicable nor will it have any impact on the ‘video games’ or the esports industry.”

India will take part in 4 Esports titles in the Asian Games

Vinod Tiwari thinks the GST council should have used the more precise terms "iGaming" or perhaps "online real money game" instead of the general word "online gaming." As it is, the Information Technology laws already specify what counts as an online real money game. “It is regrettable that in India, our Video Games or Esports Industry is often unjustifiably associated with ‘iGaming, betting, RMG, gambling, and many more, which creates unnecessary confusion and misperceptions,” Tiwari concluded.

Talking of the overall development in the Esports sector, the Indian government has stepped in to help with innovative methods. They first established the country’s first Esports University in Madhya Pradesh with unique perks and benefits for selected gamers. India is gearing up to participate in the Asian Games 2022 in Hangzhou, China in the Esports category. The teams will be competing in four titles – League of Legends, FIFA 22, Street Fighter V: Champion Edition, and Dota 2. From the next edition of the Asian Games in 2026, Esports will be upgraded to a medal event. Thus, governments are keen on investing in the growing sector.