Last Updated: August 08, 2023, 22:04 IST
MPL CEO said that the company already initiated work on revisiting server and office infrastructure costs.
MPL Co-Founder Sai Srinivas informed their employees in a circular that it was confirmed last week that a 28 per cent GST will be levied on the full deposit value rather than on Gross Gaming Revenue
Skill gaming online sports platform Mobile Premier League laid off around 350 people, which also represents almost 50 per cent of its Indian workforce, an internal company mail said.
MPL Co-Founder Sai Srinivas informed their employees in a circular that it was confirmed last week that a 28 per cent GST will be levied on the full deposit value rather than on Gross Gaming Revenue.
“The new rules will increase our tax burden by as much as 350-400 per cent. As a business, one can prepare for a 50 per cent or even a 100 per cent increase, but adjusting to a sudden increase of this magnitude means we need to make some very tough decisions,” PTI quoted Srinivas as saying.
“However, despite this, we will still have to reduce our people-related costs. Regrettably, we will have to let go of around 350 of you. This has been a heart-wrenching process because it impacts a lot of our friends and colleagues,” he added.
The CEO also added that the company already initiated work on revisiting server and office infrastructure costs.
The decision was taken in order to cut down on expenses and bear the burden of an increased GST after the council decided to levy a 28 per cent GST on online gaming and casinos on the face value of bets at the entry-level, PTI reported.
GST Revision For Online Sporting Platform
In the ongoing monsoon session of the parliament, the government is likely to introduce amendments to the Central GST law, following which states will pass the amendments in their respective assemblies.
The revision in the la is likely to be introduced by October 1.
(With PTI inputs)
