5 Reasons Why 28% GST on Esports Games Could Impact Indian Viewers Or Users

The Indian government recently announced its decision to impose a 28% GST on online gaming. The decision has received several mixed reactions from the gaming community. While some people believe that the tax will help in regulating the industry and generating revenue for the government, several others are concerned about the negative impact on the growth of esports in India.

5 Reasons Why 28% GST on Esports Games Could Impact Indian Viewers Or Users

Here are five reasons why the 28% GST on esports games could impact Indian viewers or users:

• Increased cost of entry. According to the government, the GST will be levied on the full face value of the entry fee. This means gamers will have to pay more just to participate in esports tournaments or leagues irrespective of their winnings. This could potentially discourage some players from participating, especially those who are on a tight budget.

• Reduced prize pools. The GST will also be levied on the prize money won by esports players. This can lead to smaller prize pools, making it less attractive for top players to compete in Indian tournaments.

• Increased regulatory burden. The GST imposition will require esports companies to comply with additional regulations, thus increasing their operating costs. This could also lead to higher prices for gamers, or even force some companies to exit the market.

• Less investment in the industry. The imposition of GST will make it less attractive for investors to invest in the esports industry in India. This will eventually slow down the growth of the industry and make it difficult for Indian esports teams to compete on the international stage.

• Negative perception of esports. Some people might assume that the tax is a sign that the government does not view esports as a legitimate sport. This could discourage people from participating in esports or watching esports events and have a negative perception of esports in India

That being said, it is still too early to say what the long-term impact of the 28% GST on esports games will be in India. It is possible that the tax could have a significant impact on the growth of the industry and the experience of Indian gamers.

Apart from the five reasons listed above, the other potential impacts of the 28% GST on esports games in India could include the decrease in the number of esports tournaments and leagues held in India. It could also make it more difficult for Indian esports teams to travel to international tournaments.