Quick Summary
The Indian gaming industry is facing a major challenge following the implementation of a 28% Goods and Services Tax (GST) on online real-money games. This has led to a number of companies suspending operations, including Fantok, a rising real money gaming app. Fantok announced on August 15, 2023 that it would be temporarily suspending its operations due to the complex regulatory environment and the 28% GST. The company said that it was still evaluating the situation and would resume operation
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FAQ :
Fantok has temporarily suspended operations due to the implementation of a 28% Goods and Services Tax (GST) on online real-money games in India and the resulting complex regulatory environment.
Fantok announced its temporary suspension of operations on August 15, 2023.
The new Goods and Services Tax (GST) rate for online real-money games in India is 28%.
Fantok had over 10 million users before suspending its operations.
The gaming industry argues that the 28% GST is too high, making it difficult to compete with foreign rivals, and is discriminatory as it doesn't apply to offline real-money games.
The government defends the 28% GST by stating it is necessary for raising revenue and regulating the gaming industry.
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