wordpress blog stats
Connect with us

Hi, what are you looking for?

MPL to lay off 350 employees owing to the 28% GST levy: Report

The Indian government in July announced a 28 percent GST levy on the total game value for online gaming platforms, at par with the tax levied on gambling.

Real money gaming platform Mobile Premier League (MPL) will lay off 350 employees to “survive” the 28 percent goods and services tax (GST) that will be imposed on online real money gaming companies starting October 1, Reuters reported on August 8.

“The new rules will increase our tax burden by as much as 350-400%. As a business, one can prepare for a 50% or even 100% increase, but adjusting to a sudden increase of this magnitude means we need to make some very tough decisions,” MPL CEO Sai Srinivas said in a memo sent to employees, Economic Times reported.

The layoff is expected to reduce the size of the company by half.

The Indian government in July announced a 28 percent GST levy on the total game value for online gaming platforms, at par with the tax levied on gambling. Industry stakeholders immediately criticised this move, claiming that it would destroy the fast-growing online gaming industry. The government later in the month informed that the 28 percent GST would only apply to funds deposited by users and not to the total game value. Notwithstanding this partial relief, industry participants remained unhappy, noting that the tax is still burdensome and could set the Indian online gaming industry back several years.

Why does this matter: MPL’s decision to lay off employees owing to the new GST rate could be the first of many such moves by the online real money gaming industry as they try to cut costs to remain in this competitive industry. The GST Council noted that it will review its decision on the GST levy in 6 months, and multiple such layoffs might influence the Council to roll back its policy or reduce the GST rate.

Also Read

STAY ON TOP OF TECH NEWS: Our daily newsletter with the top story of the day from MediaNama, delivered to your inbox before 9 AM. Click here to sign up today!


Advertisement. Scroll to continue reading.
Written By

Free Reads


The service from the tie-up will initally be launched at Bengaluru, Bhubaneswar, Vijayawada and Visakhapatnam railway stations


The Minister's response came after an X user posted answers generated by Gemini regarding Prime Minister Narendra Modi.


Vaishnaw said that in the next five years, there will be significant disruptions in the way telecom technology operates.

MediaNama’s mission is to help build a digital ecosystem which is open, fair, global and competitive.



Notably, Indus Appstore will allow app developers to use third-party billing systems for in-app billing without having to pay any commission to Indus, a...


The existing commission-based model, which companies like Uber and Ola have used for a long time and still stick to, has received criticism from...


Factors like Indus not charging developers any commission for in-app payments and antitrust orders issued by India's competition regulator against Google could contribute to...


Is open-sourcing of AI, and the use cases that come with it, a good starting point to discuss the responsibility and liability of AI?...


RBI Deputy Governor Rabi Shankar called for self-regulation in the fintech sector, but here's why we disagree with his stance.

You May Also Like


Google has released a Google Travel Trends Report which states that branded budget hotel search queries grew 179% year over year (YOY) in India, in...


135 job openings in over 60 companies are listed at our free Digital and Mobile Job Board: If you’re looking for a job, or...


By Aroon Deep and Aditya Chunduru You’re reading it here first: Twitter has complied with government requests to censor 52 tweets that mostly criticised...


Rajesh Kumar* doesn’t have many enemies in life. But, Uber, for which he drives a cab everyday, is starting to look like one, he...

MediaNama is the premier source of information and analysis on Technology Policy in India. More about MediaNama, and contact information, here.

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ

Subscribe to our daily newsletter
Your email address:*
Please enter all required fields Click to hide
Correct invalid entries Click to hide

© 2008-2021 Mixed Bag Media Pvt. Ltd. Developed By PixelVJ