Following GST Council's decision, Ashneer Grover calls for startup founders to join politics

Taking to Twitter, founder of BharatPe Ashneer Grover on Wednesday questioned the GST Council's decision to impose a 28 per cent tax on the turnover of online gaming, horse racing, and casinos at full face value and said that startup founders need to join politics to ensure better representation.

He asked if the Indian government is of the opinion that users will invest Rs 100 to play on Rs 72 pot entry, factoring in a gross GST of 28 per cent.

"RIP - Real money gaming industry in India. If the govt is thinking people will put in Rs100 to play on Rs72 pot entry (28% Gross GST); and if they win Rs 54 (after platform fees)- they will pay 30% TDS on that - for which they will get a free swimming pool in their living room come to the first monsoon - not happening!," he tweeted.


"It was good fun being part of the fantasy gaming industry - which stands murdered now. $10 bn down the drain in this monsoon," he said.

"India is super fun! Super ironic !' Uncles sipping on their drinks, smoke in hand, bragging about how they made their fortunes in land speculation - by putting their cash to good use, planning their next Casino trip to Macau, and passing judgment on online gaming and how its spoiling the youth," he tweeted.


Other startup founders also chipped in and pointed out that the issue is not whether real money gaming should be taxed as it’s a form of gambling, but the issue is of policy inconsistency.

N Jayakumar, MD, Prime Securities told ET, "Any industry in the world that can operate at 28% that is a question that you need to ask yourself, which industry and here what is happening when two people contribute Rs 100 each, literally instantly Rs 56 is taken away from the pool, there is no business in the world that gives you the ability to pay out Rs 56 on 200 or 28% in minute one and yet be productive or yet be able to operate in any manner, shape or form,"