GST on Online Gaming

GST on Online Gaming has been a debated topic in India for several years. The tax treatment has evolved with changes in law, technology, and regulation. With the introduction of the Promotion and Regulation of Online Gaming Act, 2025, the GST framework for online gaming has taken a new direction. These changes affect players, platforms, and tax authorities alike.

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How GST Applies to Online Gaming

Online gaming is counted as a service under GST rules. Earlier, games were grouped as games of skill or games of chance. Over time, this difference became less important when the government introduced one common GST rate. From 1 October 2023 to 21 August 2025, all online games with money involved were charged 28% GST on the full amount of the bet, no matter what type of game it was.

This rule made online gaming more expensive for gaming companies. It also forced platforms to change how they charged players. In addition, companies had to follow stricter tax rules and complete more paperwork to stay compliant.

Impact of the 2025 Online Gaming Law

From 22 August 2025, online money gaming has been banned in India. As a result, GST on Online Gaming does not apply where no money is involved. This has shifted the tax focus away from betting-based games.

Non-money games such as e-sports and educational gaming platforms continue to operate. These platforms attract 18% GST on platform fees or service charges, not on gameplay itself. Further clarity is expected from the GST Council on future treatment of such fees.

GST on Casinos and Other Gaming Activities

Casinos still come under GST. A 28% GST is charged on the total value of the chips a player buys. Lotteries are treated differently because they are counted as goods, not services. The GST rate on lotteries depends on whether they are run by the State Government or authorised by it.

Conclusion

GST on online gaming in India has changed from a wide and heavy tax system to a more controlled one. With the ban on money-based online gaming, GST applies only in limited cases. This shift promotes safer forms of gaming and brings clearer rules for operators. Strong and clear policies will help the gaming sector grow steadily while ensuring proper tax compliance.