The online skill-based gaming industry has made a case for retaining the service under the 18 percent GST slab instead of the 28 percent tax rate category, saying the move will badly hit the $2.2-billion sector. The increase in taxation would not only have a catastrophic impact on the industry, but also encourage offshore operators who would circumvent Indian tax jurisdiction by hosting games in some other country, Games24x7 Co-CEO Trivikraman Thampy said.