Gaming industry hopeful of finding ways to grow despite 28% GST challenge

The Indian government’s decision to levy 28% GST on online gaming platforms has sparked mixed reactions from the gaming community. While some gamers fear that this will affect their earnings and the growth of the industry, others are hopeful that the industry will adapt and overcome this challenge. The GST on online gaming is expected to come into effect from October 1, 2023. According to a report by KPMG India and Google, India’s online gaming industry is projected to grow at a compound annual growth rate (CAGR) of 21% over FY21-25 to reach Rs 29,000 crore.

Techno Gamerz, India’s leading gaming creator, whose captivating gameplay and witty commentary has earned him a massive following, shared his perspective, “The gaming ecosystem has evolved quite a bit in the past few years. A large set of gamers today have multiple revenue streams like brand collaborations, championships, community subscriptions, etc. GST has not impacted a majority of gamers yet as it applies only to online money gaming. I think we would be able to comment on the actual impact once it is in motion. However, I do believe that this will impact the growth of the industry overall.”

Amidst the virtual landscapes and intricate strategies, Gamertainment creator, Mythpat, said, “The gaming industry has witnessed phenomenal growth. Platforms like YouTube, Twitch, and Discord have contributed significantly to it. This has encouraged more people to choose gaming as a career, which was earlier considered unconventional. This has also encouraged global gaming players to enter and invest in the Indian market. This will surely impact the growth trajectory. But, I am hopeful that the industry will navigate this and find ways to grow.”

GamerFleet, a gaming creator who hails from a Tier-2 city, brought a unique perspective to the table. He noted, “Gaming penetrating in Tier-2 and Tier-3 cities is the true success story of the gaming industry. A creator like me, who comes from a small town, would have never thought that anybody could make money by creating content on gaming. With each passing day, I am discovering new ways to engage with the audience and thus, monetise my content. It is truly empowering. I am also learning about new platforms. I think the Indian Government has done a great job in supporting gamers and the gaming ecosystem so far. This GST might hamper one segment of the industry in the short run, but I am sure gaming companies will find a way to overcome this.”