Impact of 28% GST on Online Gaming on Job Prospects – A Hyderabad College Professor’s Insight

Could the dispute regarding the 28% goods and services tax (GST) on online gaming impact employment opportunities within the industry?

At a time when the industry is unhappy with the move, ReturnByte spoke to colleges that teach students online gaming with a focus on art and design, programming, animation, augmented reality (AR) and virtual reality (VR) about how they see the decision.

Professor Isaac Joel Raj S, Head, Department of Animation and Games, KLH Global Business School, Hyderabad, said that the impact on employment opportunities for graduates of an online gaming course would be determined by several aspects, including the nature of the gaming industry.

“With the introduction of the new GST, the prices of gaming-related goods and services such as gaming devices, software and online services may increase. This can affect the overall cost of running a gaming business and lead to budget constraints. With the introduction of GST, gaming companies are obliged to comply with tax legislation and reporting obligations. This may create a need for professionals with a strong understanding of taxation and financial management in the gaming industry,” he said.

Professor Isaac believes that graduates with a background in tax law and financial planning can find opportunities to help businesses navigate the new tax environment. However, he pointed out that the impact of GST on the employment opportunities of graduates of online gaming courses may vary widely depending on the country’s conditions and policies.

“We encourage all candidates to keep up to date with local tax laws and business developments to better understand how GST may impact career opportunities in the gaming industry,” he said.

Professor Isaac further stated that the rise of online gaming as a career option has secured global popularity, but governments’ views and regulations vary. Concerns such as fraud, money laundering and underage gambling have led some governments to consider certain forms of online gambling similar to gambling, he said, leading to regulatory action. In addition, he said, player protection, lack of consensus among stakeholders and cultural considerations are also shaping the government’s approach.

“However, some governments are actively supporting the eSports industry, recognizing its economic potential, job creation and international competitiveness. As the industry continues to mature, governments in some regions are increasingly enabling and supporting online gaming and eSports,” he noted.

On job opportunities in India, he said that professional gaming offers an opportunity to compete in tournaments, earn awards and secure sponsors, while game testing allows players to turn their passion into a profession by identifying bugs and providing feedback. “The growing demand for game developers offers opportunities for programmers, designers and artists. Content creation and streaming on platforms such as Twitch and YouTube allow players to monetize their games. Game journalism and broadcasts require strong communication skills to cover and comment on the news. Game design and art roles are suitable for those with technical and artistic abilities. With dedication and skill development, gamers can find exciting careers in India’s growing gaming industry.”

REQUESTS GST COUNCIL TO RECONSIDER: CHANDRASEKHAR

In a CNN-ReturnByte town hall on Monday, Minister of State for Electronics and IT Rajeev Chandrasekhar said the GST Council is not the Government of India as it is represented by all state governments.

Chandrasekhar said, “State governments and finance ministers have come together and created the GST framework. This is the result of their work of three years. While we may quibble with the findings, we have to admit that the creation of the framework for online gaming has started in January 2023.

“We are in the early stages of creating a predictable, sustainable and permissible online gaming framework… We will go back to the GST Council and perhaps ask them to consider the facts of the new regulatory framework,” he added.

Chandrasekhar’s letter in his tweet further clarified where the government stands, stating that as the emerging and evolving regulatory framework around the online gaming rules defining permissible online games evolves, they will “communicate the new framework to the GST Council and request them to consider this new. framework”.