Atishi to seek withdrawal of tax notices to online gaming companies at GST Council meet

Delhi Finance Minister Atishi on Saturday raised concerns regarding tax evasion notices totaling Rs 1.5-lakh crore that have been issued to online gaming companies.
While addressing the media, she emphasised that these notices, if enforced, could potentially spell the demise of these companies.

Atishi firmly pledged to advocate for the withdrawal of these notices during the GST Council meeting scheduled to be held later in the day.

She also underscored the importance of the online gaming sector, which is often hailed as a burgeoning industry within the startup ecosystem.

However, the Minister also expressed her deep reservations about a recent decision made by the GST Council, which imposed a hefty 28 per cent GST rate on online gaming, pushing it into the highest tax bracket.

“This sector has provided employment opportunities to over 50,000 young individuals and attracted a substantial foreign investment amounting to Rs 17,000 crore. Given these significant economic contributions,” she said.

Atishi further stressed the critical need to rescind the tax evasion notices in order to safeguard the industry's future.

The Minister also pointed out that maintaining a stable and predictable tax environment is essential for attracting and retaining foreign investors in the online gaming sector.

She emphasised that any instability or unpredictability in the tax regime could dissuade foreign investments and, subsequently, have a detrimental impact on the broader startup ecosystem in the country.