Global gaming firms running 'no GST' ads to lure Indians to their platforms

The development has come in the wake of a recent government decision that imposed a 28% GST on the full-face value of the placed bets

A number of international gaming companies are running advertisements that promise 'No GST' to attract Indian gamers to their websites, The Economic Times (ET) has reported.

Global gaming platforms like winbuzz.com and gamer777.com are also collaborating with social media influencers to reach out to Indian gamers and making them promises of earning money and "avoiding 28% GST".

These gaming firms are offering influencers up to Rs 1,000 per social media post on X (Twitter), Instagram and Facebook to ask gamers to use their platforms, the ET report said.

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Speaking about the subject, a senior official at one of the Indian gaming companies told the newspaper, "They (offshore players) are taking advantage of the fact that gaming companies are in a Catch-22 situation right now as far as GST is concerned."

A social media post promoting the platform 1xbet used direct ads that said, "No 28 per cent GST and no TDS," the report said.

Some other adverts by platforms like Winbuzz said that even if a player were to earn Rs 1 crore on the fantasy gaming platforms, they end up paying Rs 28 lakh as GST. However, if they played on Winbuzz, they stand a chance to take the whole amount home without the need to pay any taxes, the report stated.

Also Read: 28% online gaming GST: Indian e-sports industry to emerge unscathed

The development has come in the wake of a recent government decision that imposed a 28 per cent GST on the full-face value of the placed bets. 

Regarding the government's decision, Finance Minister Nirmala Sitharaman said the idea was not to hurt the gaming industry. However, the minister had said there was a moral question: whether the industry can be endowed with greater encouragement than essential goods.

Indian law does not allow advertisements that promote betting, gambling, or wagering of any kind. Given this condition, the online ads carried disclaimers that claimed that the post was not "promotional" or "paid for" and that the gamer was "just doing their bit" as "anyone else should," the ET report added.

Also Read: 28% GST on online gaming to yield Rs 20000 cr annually