Unfortunately, on one hand, we talk about promoting our start-ups and discuss policies such as Start-up India but on the other hand the GST council are taking some steps that will destroy the start-up industry in India. The biggest growing segment in the startup industry is the online-gaming sector. More than 50,000 people are employed in this online gaming sector. 17,000 crores of foreign investment have come in this sector. More than 40 crore people use these online games as a means of entertainment in India. It is a sun-rise sector in the Indian-startup arena. But the GST council imposed 28% of GST on this gaming sector. This is the highest tax bracket in the GST. The Delhi Government opposed this tax. Because many people from the tier-2, tier-3 cities play these online games. Imposing 28% GST on any sector on an immediate basis might impact the sector severely and this might pave a way to illegal online - gaming apps and betting apps. However, the GST council also said that they will see to it that if there is a downfall in the sector, they will reconsider their decision. This tax was to be imposed from 1st October but before this, the DGGI of the GST Council sent tax evasion notices worth 1.5 lakh crores to all the online gaming industry of the last 6 years. An industry worth ₹23,000 crores are sent notices worth ₹1.5 lakh crores. This will destroy the whole sector and will lead to unemployment. The future employment potential which this sector has, will be destroyed. Such a tax system will also lead to a reduction in the foreign investment. Hence it is necessary that such tax evasion notices, which are being sent to these gaming industries should be stopped. I’m going to raise this issue in the GST Council.
#atishi #gst #nirmalasitharaman #aap #aamaadmiparty #atishimarlena #onlinegamingtax #goodsandservicetax #gstcouncil #bjp #narendramodi #startup #startupindustry #startupindia
#atishi #gst #nirmalasitharaman #aap #aamaadmiparty #atishimarlena #onlinegamingtax #goodsandservicetax #gstcouncil #bjp #narendramodi #startup #startupindustry #startupindia
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NewsTranscript
00:00 In India's economic growth, startups and entrepreneurs have played a very important role
00:07 in giving vibrancy to the Indian economy, giving jobs to youth.
00:11 And moving forward also, our country's economy needs startups and young entrepreneurs.
00:20 But unfortunately, on one hand we talk about promoting startups,
00:25 on the other hand we talk about policies like Startup India,
00:29 but on the other hand, GST Council is taking many such decisions
00:35 that are moving towards ending the biggest sector of our country's startup industry.
00:43 Today, online gaming is the biggest growing segment in India in the startup economy,
00:47 startup sector, and entrepreneurship sector.
00:54 Online gaming is a sector in which more than 50,000 people are employed today.
01:01 The online gaming industry has received a foreign investment of 17,000 crores.
01:08 The online gaming industry has grown so much that there are more than 40 crores people in the country
01:15 who play small online games, some play Ludo, some play carrom, some play chess,
01:20 as a form of entertainment they use it.
01:24 Online gaming is considered a sunrise sector of the Indian startup sector.
01:29 But GST Council recently took a decision, ratified it in its 51st Council meeting,
01:37 and imposed 28% GST on the online gaming sector.
01:42 This is the highest tax bracket in GST.
01:46 Delhi also opposed it.
01:48 Delhi opposed it because online gaming is not a luxury sector.
01:54 It is not like betting, gambling, or horse racing,
01:57 which involves only rich people in that sector.
02:03 Today, you see that many people play many types of small games on online gaming websites
02:09 for entertainment in tier 2 cities, tier 3 cities, and all over the country.
02:15 Secondly, if 28% tax is imposed on an industry,
02:21 it has a huge impact on that industry.
02:25 If we tax the legal online gaming industry so much,
02:31 and that industry is no longer in use, many startups are shut down,
02:37 we are also opening ourselves out to the illegal online betting and gambling industry.
02:43 But still, GST Council took this decision.
02:46 The good thing was that GST Council also took the decision that
02:49 within 6 months, we will review the 28% tax.
02:54 If there is a lot of downfall in this sector, we will reconsider it.
03:00 This 28% tax was to be imposed from October 1.
03:04 But before that, GST Council's DGGI
03:11 has sent a tax evasion notice of 1.5 lakh crores to the entire online gaming industry for the past 6 years.
03:21 Imagine that there is an industry whose valuation, according to media reports, is of 23,000 crores.
03:30 A 23,000 crores industry gets a tax notice of 1.5 lakh crores.
03:38 What will happen with this? The entire sector will be shut down.
03:43 No company will be able to survive and pay the tax of its valuation.
03:48 For example, there is a company whose total valuation is 19,000 crores.
03:56 A company of 19,000 crores has received a notice of 10,000 crores.
04:02 Obviously, that company cannot pay this tax.
04:05 What will be the result of this?
04:07 The result will be that these companies will not be able to pay the tax.
04:11 To pay this tax, these companies will be shut down.
04:15 If these companies are shut down, then the young people who are working in these companies,
04:21 more than 50,000 programmers, will become unemployed.
04:27 Secondly, the potential to provide employment to the entire sector will be lost.
04:35 Thirdly, this is a sector in which a foreign investment of 17,000 crores has already come.
04:43 There was another foreign investment of 25,000 crores in the pipeline.
04:48 But when there is such an unstable tax environment,
04:51 when there is such an unstable investment environment,
04:55 then which foreign investor would want to invest in these companies?
05:00 Not just this, this unstable and erratic tax environment will not only impact the online gaming industry,
05:09 it will impact the entire startup sector.
05:12 If I am a foreign investor, what will I feel?
05:15 If I invest in a startup in India,
05:18 there will be a few years of growth in it,
05:20 all of a sudden, 5 years old taxes will be imposed,
05:24 so much money will be taken from those companies and all my investment will be lost.
05:30 That is why no foreign investor would want to invest in Indian startups.
05:36 And the most important thing,
05:38 see these companies shut down,
05:41 any youth who is passing out from college, engineering, or IIT,
05:49 will think why should I become an entrepreneur?
05:51 Do a good safe job, because starting your own startup is so risky.
05:56 Despite the growth, if such a big tax is imposed in our country,
06:00 then our startup will be completely finished.
06:02 If the youth of our country starts to fear starting a startup,
06:08 then where will our country's next Flipkart come from?
06:11 Where will our next Paytm come from?
06:13 Where will our next Zomato come from?
06:16 Where will our next OYO come from?
06:18 Where will our next Bharat Pay come from?
06:21 That is why it is very important that such notices,
06:25 which want to end the online gaming industry, should be withdrawn.
06:30 Today, there is a meeting of GST Council,
06:33 and I will definitely raise this issue in the GST Council meeting,
06:37 that our tax notices will end the online gaming industry,
06:42 and it is necessary to withdraw these notices.
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