Urgent Letter to PM Modi: Crisis Ahead as India Faces Billions in Repercussions from 28% GST Rule for Gaming!

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The letter said explicitly that the current GST plan “heralds an unprecedentedly onerous tax regime for the gaming sector on a global scale, triggering an imminent risk of forfeiting a staggering $2.5 billion invested capital within this industry.”

Prime Minister Modi has been warned that the disastrous 28% GST tax threatens a $2.5 billion investment in the real money online gaming sector. 30 top Indian and international investors have called for immediate intervention.

 

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Influential investors, including titans like Peak XV Capital, Tiger Global, DST Global, Bennett, Coleman & Company Limited, Alpha Wave Global, Chrys Capital, Lumikai, and others, have urgently written to Prime Minister Narendra Modi on July 21 to warn him about the grave repercussions of the GST Council’s decision to levied a hefty 28% tax on the real money online gaming sector.

If this outrageous tax scheme is put into effect, it would result in the catastrophic impairment of $2.5 billion in priceless investments in this developing market.
Even worse, it raises the possibility of stifling future opportunities and jeopardizing a massive $4 billion potential investment inflow over the following three to four years.

The investors’ passionate argument is supported by a sobering fact: the new GST rule would create a record-breaking worldwide tax burden and necessitate the heartbreaking write-off of the significant investment made in this crucial sector. To protect investments and the booming potential of the gaming industry, fast action is required due to the urgency of the problem.

The investors want Prime Minister Modi to act quickly to stop an imminent calamity that might have an impact on the gaming sector and beyond since time is running short.

GST Council’s Shocking Blow: $4 billion in potential investments are at risk as investor confidence in the Indian tech ecosystem is under attack!

The latest GST Council decision has shocked the investing community, leaving behind astonishment, confusion, and dismay. Investors voice their worries with great fervor, cautioning that this onerous 28% tax levy will seriously and negatively affect investor trust in all rising industries within the Indian IT ecosystem, not only the gaming sector.

The ramifications are severe and widespread, endangering the promising future of the thriving gaming industry. The future of India’s gaming sector is at risk since at least $4 billion worth of prospective investments stand to suffer over the next three to four years.

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The letter draws attention to a serious issue that requires immediate action: the definition of “full value of bets.” If the GST is applied to each contest entered and the prizes are completely taxed, the burden increases by an astounding 1,100%. Such an unsustainable tax load might be disastrous for the gaming industry, impeding growth and innovation.

The heartfelt appeal to reconsider this choice resonates with a feeling of urgency, pleading with decision-makers to notice the potentially disastrous effects and act immediately to address them. The future of the Indian IT ecosystem is in jeopardy, and urgent action is required to protect the thriving investment environment and promote sustained growth in this crucial industry.

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