Hike Lays Off Over One-Fifth of Workforce Due to GST Raise on Online Gaming

Kavin Bharti Mittal-founded Hike, which owns Rush Gaming Universe, has laid off about 55 people — more than one-fifth of its total workforce — to absorb the impact of the GST hike on online gaming, a top company official said on Thursday. The entire team of Hike is engaged in the development of Web3 gaming platform ‘Rush Gaming Universe’.

In some relief to online gaming industry, the GST Council on Wednesday decided that 28 per cent GST will be levied at face value of entry level bets placed in gaming platforms and casinos.

The decision to impose a 28 percent tax on the full face value of bets placed on online games will be implemented from October 1 even though there was demand for a review from states like Delhi and Goa, finance minister Nirmala Sitharaman said on Wednesday.

Delhi minister and Aam Aadmi Party (AAP) leader Atishi has assured entrepreneur and influencer Ashneer Grover that she will urge the GST council to reconsider its decision to impose 28 per cent tax on online gaming.

A meeting of the GST Council is set to be held tomorrow via videoconferencing, where the members will discuss and take a final call on the proposal to levy 28 per cent GST on online gaming, casinos and horse racing, finance ministry officials said.

As many as 2,784 cases of GST evasion involving Rs 14,302 crore were detected in the first two months of the current fiscal, while Rs 5,716 crore was recovered during the period, Parliament was informed on Monday.

Students will have to shell out more for hostel accommodation as a 12 per cent GST would be applicable on the rent paid, the Authority of Advance Ruling said in two separate cases.

GST officers have unearthed two fake billing rackets involving 246 shell/fake entities involved in fraudulently passing input tax credit (ITC) of Rs 557 crore and arrested three key operatives.

Of the Rs 3.09 lakh crore net proceeds of shareable union taxes and duties distributed to the states, Central GST collection devolution stood at Rs 94,368 crore till July.

Chinese smartphone makers, including Oppo Mobile, Vivo India and Xiaomi Technology, have been found evading taxes worth Rs. 9,000 crore in India, Parliament was informed on Friday. Data shared by the Minister of State for Electronics and IT Rajeev Chandrasekhar in Rajya Sabha showed tax evasion comprising customs duty and GST.

Days after a 42-year-old man was arrested for allegedly duping a jeweller of 10 kilogrammes of gold worth Rs 6 crore, police have recovered two kilogrammes of gold following raids in Punjab's Ludhiana, officials said on Wednesday.

Amid the online gaming industry raising concerns over the levy of 28 per cent GST, Union minister Rajeev Chandrasekhar on Monday said the government may request the GST Council to consider the facts of new regulatory framework for the industry.

Tamil Nadu BJP chief K Annamalai on Saturday accused the ruling DMK of undertaking a disinformation campaign against the Centre issues including the Uniform Civil Code (UCC), and said the truth will be exposed in the forthcoming Parliament session.

Shaadi.com founder and Shark Tank India judge Anupam Mittal slammed the move, saying that entrepreneurs should now build rockets rather than gaming companies.