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The online gaming industry fears it may face a “Vodafone-like” situation because the government demands 28 per cent goods and services tax (GST) from companies such as Gameskraft Technology Private Ltd (GTPL) for the period when the amended law was not even in force.
Tax on a retrospective basis was imposed on Vodafone. The fear of retrospective demand may come to haunt the online gaming industry, they apprehend.
Even with the amended GST law, recently notified by the government, restricting the tax to entry deposits, industry sources said the tax liability on online gaming companies would increase over 400 per cent as against the 18 per cent tax on platform fees they paid.
