The game industry will stop if COS must pay RS 1.1 Lakh crores in the past requirements of the TPS: Jain de Dream11

New Delhi: Search for an independent statutory regulator as a sebi to manage the business affairs game industryHarsh Jain, co-founder and CEO of the most precious games company in the DREAM11 country, said that “the majority of companies close” in the event that the center continues to insist on its opinion to recover more than RS 1.1 Lakh believes in requests for TPS, including those who sliced ​​retrospectively (remained by the Supreme Court on January 10).
Dream11, who himself faces a GST request of 28,000 complaints, said that the more than 400 play companies involved in the TPS opinions had no more than 10,000 breaks of rupees with them To compensate for tax demand. “All the major financial numbers you see for us are in terms of our assessments (at the time of fundraising). But assessments cannot pay taxes. The full industry will stop if it is forced to pay the tax request, ”Jain told you.
The TPS council had on October 1, 2023, imposed a 28% tax on the full value of the collections of players on online online game platforms instead of the previous 18% on business income. In what aggravated things for industry, the government said that the tax would apply retrospectively, covering transactions from August 2017 to October 1, 2023.
Jain, who co -founded Dream11 in 2008 with Bhavit Sheth, says that this request is non -viable and untenable.
Dream11 had become a unicorn in April 2019 and was last time at $ 8 billion when he collected funds in 2021. However, his financial number is a hue of the evaluations. During the fiscal year, the parents of Dream11 Dream Sports experienced a consolidated turnover of 6,581 rapes (up 62% on Rs 4,065 crore) and the profits of Rs 188 crores (up 32% on RS 142 crores). However, its listeners had then declared that the request of the company to the company led to a “significant uncertainty which could launch a significant doubt on the group’s ability to continue as concern”.
Jain said that if the new TPS rates lead to a windfall for the government, the industry is in ruins. In addition, the income and profitability of the largest companies have been very seriously affected, with few ways to win. “Govt’s collections have gone from around 3,000 expansion of rupees (before TPS rate changes) to Rs 16,000 to 17,000 crores in the new rates and TDS of the TPS. However, industry revenues fell 30 to 40% and profits dropped from 60 to 70%. »»
He said that even venture capital funds have dried up. “Money VC has disappeared. Many companies have closed the workshop and many lost jobs. Although the best 10 larger players are still profitable, their income is now down from 60 to 70% and they represented around 90% of TPS payments. »»
Jain said that, as was the creation of SEBI had led to a cleaning of the stock markets, it is necessary for an independent organization similar for game companies. “In any market, you will have people who do bad things until regulators intervene. We really hope that the regulations will come in the games. We need a SEBI type body for games. We have been waiting for regulations for almost two years. I hope the Ministry of IT will start working on it. »»
He said that rather than looking for higher TPS collections with companies, the TPS council should consider reducing platform rates with raw play tax (GGR) and not on the full value of players’ collections.
Jain also talked about offshore games companies, many of whom – he said – illegally operated in the country, dodging government taxes and engaging in the promotion of betting rather than leaving in challenges based on SKILLS.