WinZo flags GST concerns as growth rate takes a hit

The goods and services tax (GST) levied on online gaming platforms should be on their revenues, and not on deposits made by customers in platform wallets, WinZo co-founder and chief executive Paavan Nanda told FE, as the company’s growth rate slowed in FY24.

The company’s growth is likely to be stymied further in FY25, when the full impact of the higher GST rate of 28% will be felt. The new GST regime came into force in October 2023, resulting in a partial impact on the gaming platform’s FY24 financials. WinZo reported a net revenue of Rs 1,055 crore in FY24, up 70% year-on-year from Rs 619 crore.