MPL Layoffs: After the GST rate hike, MPL made huge layoffs, laid off around 350 people
The GST Council had decided to levy 28 percent GST on online gaming and casino. In fact, in the monsoon session of the Central Parliament, there is a preparation to bring amendment in the Central GST Act.
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Online sports platform Mobile Premier League (MPL) has laid off a large number of its employees. According to the information, MPL has fired about 350 people. This number is almost half of India's team of MPL. The company has cited cost-cutting and an increased GST burden of 28 percent for the decision.
Decision to impose 28 percent GST
In fact, the GST Council had decided to levy 28 percent GST on online gaming and casino. In fact, in the monsoon session of the Central Parliament, there is a preparation to bring amendments to the Central GST Act. The states will then pass this amendment in their respective assemblies to pave the way for a change in the law by October 1.
Said this in the email sent to the employees
MPL co-founder Sai Srinivas said in an email to employees that last week it was clarified that a 28 percent GST would be levied on the full deposit value instead of gross gaming revenue. With these new rules, our tax burden will increase by 350-400 percent. One can make arrangements for 50 or 100 posts per century increase, but for such a heavy burden, we need to take some very tough decisions.
Work to reduce these costs started
He said that as a digital company, our cost mainly consists of people, servers and office infrastructure. Therefore, in order to move forward and ensure business operations, we need to take steps to reduce these expenses. We have already started the cost review of our server and office infrastructure. Sadly we have to let go of about 350 of you.