Games24x7 lays off staff as Supreme Court hears 28% GST case
Mumbai: Games24x7 initiated layoffs over the past few days, coinciding with Supreme Court hearings on the 28% Goods and Services Tax (GST) on online gaming that began Monday.
The company declined to comment on the layoffs or disclose how many people were affected. However, two industry executives aware of the matter estimated that around 180 employees were let go.
As of October 2024, Games24x7 had a workforce of 821 employees, according to Tracxn data. This would imply a reduction of roughly 21.9% of its staff.
Read this |
Online gaming: One nation, one law may blaze a way out of the maze
A third senior executive with direct knowledge of the matter, who requested anonymity, said the layoffs were 'necessary, since the company had over-hired to chase a fast stretch of growth over the past two years."
Another person familiar with the matter added that all those laid off were full-time employees. 'The layoff was done to reduce the impact of cost in its fantasy sports division, My11Circle."
My11Circle, Games24x7's fantasy gaming platform, competes with Dream11 and is the title sponsor of this year's Indian
Premier
League (IPL). Both executives cited the IPL sponsorship as a significant cost burden on the company.
Games24x7, which also operates RummyCircle, is backed by Tiger Global Management, The Raine Group, Malabar Investment Advisors, and Das & Co. The company has expanded internationally. In FY23, it reported
₹
1,988 crore in operating revenue—a 70% increase over the previous year—alongside a net loss of
₹
199 crore, 29% lower than its FY22 loss.
The layoffs come at a time of heightened scrutiny for the online gaming industry. On Monday, the government told the Supreme Court it would not distinguish between games of skill and games of chance for taxation under GST, and reiterated that the 28% levy should apply to the total entry amount in online games.
This tax policy, first imposed in 2023, has already had a sweeping impact on the sector. That year saw the most significant job losses, as companies reeled from the increased financial burden. Many firms have since instituted hiring freezes, with job postings reportedly dropping by 22% to 60%, particularly for junior to mid-level roles. Some early-stage startups are also struggling to sustain operations, with several seeking consolidation or shutting down entirely.
Read this |
Amid lack of regulation, online gaming in limbo, failing to attract investment
In August 2023, MPL laid off around 350 employees—nearly half its workforce—citing a 350–400% increase in tax liability due to the new rules. The product team was particularly affected. Around the same time, Rush Gaming Universe cut 55 jobs, or 25% of its staff, attributing the decision to the GST regime.
The real-money gaming platform Quizy shut down operations altogether. Its founder, Sachin Yadav, cited the revised taxation rates—including the removal of the TDS exemption limit and a flat 30% TDS on all winnings—as key reasons for the closure.
Also read |
Privacy law: Under-18s to be defined as minors in gaming
In November 2023, Mumbai-based game-streaming platform Loco laid off 40 employees, accounting for 36% of its workforce. The company framed this as a strategic restructuring to enhance cost efficiency and support global expansion.
Despite the upheaval, India's online gaming user base continues to grow. According to the FICCI-EY Report 2025, the number of online gamers in the country rose to 488 million in 2024, with projections indicating further growth.
With inputs from Shouvik Das.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Time of India
an hour ago
- Time of India
Flex-fuel drive: Ministry seeks lower GST on crude ethanol
NEW DELHI: At a time when the Centre and states are discussing the rationalisation of the GST structure, road transport minister Nitin Gadkari sought a reduction in the levy on crude ethanol from 18% to 5% to encourage the manufacturing and sale of flex-fuel vehicles. At present, GST on ethanol used for blending with petrol under the Ethanol Blended Petrol (EBP) Programme is 5%. Sources said Gadkari suggested parity in the GST rate for both crude ethanol and the green fuel used for blending in petrol. Currently, around 400 fuel pumps sell 100% ethanol, but demand remains muted. 'Why will people go for these vehicles if the price of crude ethanol is equal to or more than that of petrol? Hence there is a need to bring down the GST rate,' a source said. The suggestion for lower taxes comes at a time when the Centre has taken up a holistic review of the GST structure, instead of limiting it to a select set of goods and services such as life and health insurance. Finance Minister Nirmala Sitharaman and a team of officials at the Centre are looking at the issue in detail before they present the proposals and seek to evolve a consensus. At least two groups of ministers comprising representatives from the states were set up, but the suggestions made by them were not seen to be complete. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like This Device Made My Power Bill Drop Overnight elecTrick - Save upto 80% on Power Bill Pre-Order Undo A third group of ministers is tackling the issues of cesses as the compensation cess is due to end in March. While there is reluctance from state finance ministers to tinker with the four slabs of 5%, 12%, 18%, and 28%, there is growing demand from industry that rationalisation is the need of the hour given that there are several items on which classification concerns have emerged since the regime kicked in eight years ago. Besides, the structure is such that almost two-thirds of the collections come from the 18% slab, although a majority of the items are in the 5% bracket, which yields very little revenue. In the past, there have been discussions around merging the 12% and 18% slabs and putting items in these two brackets at 15-16%. While it will result in some revenue loss, there could also be a political challenge given that items in the 12% bracket will see a higher levy. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
Time of India
2 hours ago
- Time of India
GST filing gets tougher: No room for error in GSTR-3B from July
Ahmedabad: From July onwards, taxpayers will no longer be able to edit auto-populated tax liability in their GSTR-3B returns — a major change in the Goods and Services Tax ( GST ) framework. The GST Network (GSTN) has rolled out this update, aiming to curb misuse and plug revenue leakages. However, tax experts warn that this will warrant higher accuracy from suppliers and could trigger cash flow challenges for buyers. Taxation experts say that to address discrepancies in GSTR-1 filings, a new form—GSTR-1A—has been introduced but it isn't real-time. This means any corrections made through GSTR-1A could delay Input Tax Credit (ITC) for buyers, potentially leading to working capital issues. "This is a major structural shift," said Deep Thakkar, chartered accountant and co-chairman of the Indirect Tax Committee at the Gujarat Chamber of Commerce and Industry (GCCI). "Currently, suppliers file GSTR-1, which auto-populates their GSTR-3B and also feeds into the buyers' GSTR-2B. If suppliers make an error or want to adjust their tax liability, they currently edit GSTR-3B directly. That option will no longer be available,," says Deep Thakkar, chartered accountant and co-chairman of the Indirect Tax Committee at the Gujarat Chamber of Commerce and Industry (GCCI). From July, if a supplier makes a mistake in GSTR-1, the only way to correct it is by filing GSTR-1A—before the GSTR-3B deadline, which is the 20th of every month. However, since GSTR-2B (used by buyers to file GSTR-3B) is generated on the 14th, late corrections may only reflect in the next month's ITC cycle, delaying credit and tying up funds. Explaining the rationale behind the decision being taken, a senior GST official said on condition of anonymity, "The decision to restrict editing in GSTR-3B has been in the pipeline for nearly 18 months. When a supplier files GSTR-1, the output tax liability gets auto-populated into the system and becomes part of the buyer's Input Tax Credit (ITC). This happens by the 10th of every month, with GSTR-3B due by the 20th. If a supplier defaults on tax payment, the entire recovery chain is impacted. Allowing edits in GSTR-3B was leading to misuse—essentially allowing ITC to be passed on without corresponding tax being paid. At some point, the system needs to be secured to protect government revenue." Chartered accountants claim that the decision while making way to curb fraudulent claims will certainly increase the compliance burden of taxpayers. "This change will certainly reduce fraudulent ITC claims and plug revenue loss. But it also increases the compliance burden. Even genuine mistakes in GSTR-1 can be rectified only through GSTR-1A which needs to be streamlined as it is essential to avoiding penalising honest taxpayers," said Thakkar. Another Chartered accountant Karim Lakhani echoed the concerns, stating, "The margin for error has shrunk dramatically. Every supplier will now need to file GSTR-1 with utmost accuracy. Any lapse can impact their clients' ability to claim timely ITC. This is one of the most significant changes to the GST regime since its inception." Ahmedabad: From July onwards, taxpayers will no longer be able to edit auto-populated tax liability in their GSTR-3B returns — a major change in the Goods and Services Tax (GST) framework. The GST Network (GSTN) has rolled out this update, aiming to curb misuse and plug revenue leakages. However, tax experts warn that this will warrant higher accuracy from suppliers and could trigger cash flow challenges for buyers. Taxation experts say that to address discrepancies in GSTR-1 filings, a new form—GSTR-1A—has been introduced but it isn't real-time. This means any corrections made through GSTR-1A could delay Input Tax Credit (ITC) for buyers, potentially leading to working capital issues. "This is a major structural shift," said Deep Thakkar, chartered accountant and co-chairman of the Indirect Tax Committee at the Gujarat Chamber of Commerce and Industry (GCCI). "Currently, suppliers file GSTR-1, which auto-populates their GSTR-3B and also feeds into the buyers' GSTR-2B. If suppliers make an error or want to adjust their tax liability, they currently edit GSTR-3B directly. That option will no longer be available,," says Deep Thakkar, chartered accountant and co-chairman of the Indirect Tax Committee at the Gujarat Chamber of Commerce and Industry (GCCI). From July, if a supplier makes a mistake in GSTR-1, the only way to correct it is by filing GSTR-1A—before the GSTR-3B deadline, which is the 20th of every month. However, since GSTR-2B (used by buyers to file GSTR-3B) is generated on the 14th, late corrections may only reflect in the next month's ITC cycle, delaying credit and tying up funds. Explaining the rationale behind the decision being taken, a senior GST official said on condition of anonymity, "The decision to restrict editing in GSTR-3B has been in the pipeline for nearly 18 months. When a supplier files GSTR-1, the output tax liability gets auto-populated into the system and becomes part of the buyer's Input Tax Credit (ITC). This happens by the 10th of every month, with GSTR-3B due by the 20th. If a supplier defaults on tax payment, the entire recovery chain is impacted. Allowing edits in GSTR-3B was leading to misuse—essentially allowing ITC to be passed on without corresponding tax being paid. At some point, the system needs to be secured to protect government revenue." Chartered accountants claim that the decision while making way to curb fraudulent claims will certainly increase the compliance burden of taxpayers. "This change will certainly reduce fraudulent ITC claims and plug revenue loss. But it also increases the compliance burden. Even genuine mistakes in GSTR-1 can be rectified only through GSTR-1A which needs to be streamlined as it is essential to avoiding penalising honest taxpayers," said Thakkar. Another Chartered accountant Karim Lakhani echoed the concerns, stating, "The margin for error has shrunk dramatically. Every supplier will now need to file GSTR-1 with utmost accuracy. Any lapse can impact their clients' ability to claim timely ITC. This is one of the most significant changes to the GST regime since its inception."
Fibre2Fashion
5 hours ago
- Fibre2Fashion
US garment spending dips, imports rise amid tariff uncertainty
US consumer spending on garments fell by 0.7 per cent month-over-month in April 2025, despite a 4.6 per cent year-over-year increase. The CPI for garments also dipped by 0.1 per cent month-over-month and 0.5 per cent year-over-year, according to Cotton Incorporated. Meanwhile, imports of cotton-dominant apparel rose 13.4 per cent from a year earlier, maintaining average import costs near $3.70 per square meter equivalent since late 2023. US garment spending fell 0.7 per cent in April despite a 4.6 per cent annual rise, while cotton-dominant apparel imports rose 13.4 per cent year-over-year. Garment CPI declined slightly, and import costs remained stable. Tariff uncertainty looms as courts challenge the President's authority under IEEPA. Job growth slowed to 139,000 in May, with unemployment steady at 4.2 per cent. This import activity occurred amid ongoing trade uncertainty. In April, the US began implementing broader tariff increases, prompting mixed responses from retailers—some pulled orders forward to avoid higher duties, while others delayed shipments in hope of a rollback. The situation was further complicated in late May by two court rulings that questioned the President's authority under the International Emergency Economic Powers Act (IEEPA) to impose sweeping tariff changes. These decisions, now under appeal, may escalate to the Supreme Court, with existing tariff rates currently remaining in place, Cotton Incorporated said in its Executive Cotton Update - US Macroeconomic Indicators & the Cotton Supply Chain - June 2025. The US economy added 139,000 jobs in May, though prior months were revised down. The unemployment rate held steady at 4.2 per cent—its highest since 2021, yet historically low. Wage growth continued to moderate, rising 3.9 per cent year-over-year. Consumer confidence rebounded in May, with the Conference Board's Index rising by 12.3 points to 98 after five consecutive months of decline. Broader consumer spending rose just 0.1 per cent in April, following a strong 0.7 per cent increase in March. Ongoing tariff negotiations are set to conclude by July 9 for most partners and mid-August for China. If unresolved, reciprocal tariffs may take effect, posing further challenges for retailers and global supply chains. Fibre2Fashion News Desk (KD)
