Ashneer Grover Criticizes ₹55,000 Crore Tax Notice Targeting Gaming Enterprises: ”Unfairly Targeting Entrepreneurs”

The former BharatPe founder has cast doubt on the rationale behind the actions of individuals overseeing the tax department, asserting that their primary objective appears to be the unwarranted persecution of business figures. Ashneer Grover, the visionary behind the fantasy gaming application Crickpe, expressed his vehement disapproval of the tax authorities for issuing substantial tax demand notifications to gaming corporations in a strongly-worded tweet.

Notably, the Directorate General of GST Intelligence (DGGI) has issued preliminary show-cause notifications to twelve online gaming enterprises, collectively amounting to ₹55,000 crore. Of particular note is Dream11, the preeminent gaming unicorn, which has incurred the most substantial tax liability, amounting to ₹25,000 crore. The former BharatPe luminary has questioned the intellectual soundness of those at the helm of the tax department, alleging that their sole intent is to unjustly burden business leaders.

Deriding this endeavor, he has posited that neither will the populace acquiesce to the exorbitant tax demands, nor will the government succeed in collecting them. Instead, he contends, it will engender a “game of monopoly” benefiting legal practitioners who will mount challenges to the policy in the Supreme Court. Mr. Grover has further characterized this as a ‘retrospective tax,’ drawing parallels with the Vodafone Retrospective Tax imposed during the tenure of the Congress. He quips that this new imposition, the Gaming GST Retrospective Tax under the BJP’s purview, does not align with the government’s vision of realizing a 5 trillion-dollar economy, and he has petitioned the Finance Ministry to address this pressing matter.

In response to his tweet, one user astutely remarked, “Despite all the rhetoric about Ease of Doing Business, India must undertake more substantial measures to truly cultivate a business-friendly environment.” Another opined, “The vision of a 5 trillion-dollar economy seems to be a pursuit for the political echelon, rather than being a benefit for us, the common citizens.”

It’s worth noting that Mr. Grover had previously censured the Goods and Services Tax (GST) Council’s decision to impose a 28 percent tax on the turnover of online gaming enterprises. The online gaming industry has contended that the imposition of a 28 percent GST will curtail their capacity to invest in innovative gaming experiences, adversely impacting cash flows and hindering business expansion. Notably, Mr. Grover introduced his own fantasy gaming venture, Crickpe, in April of this year, offering users the opportunity to assemble virtual teams of cricketers based on their current performance. Players are rewarded based on the real-life performance of their chosen cricketers during live matches.