India’s real-money gaming sector is staring at a fresh tax impact after the government signalled a new GST architecture with a special 40% rate for sin and luxury categories.
While final itemisation will be decided by the GST Council, industry stakeholders fear online money gaming could be clubbed in this bucket, sharply lifting the tax incidence beyond the regime introduced in October 2023. Government always maintained online money gaming as part of sin goods.
GST on online gaming – second round of reforms?
In the 2023 reforms, Parliament and the Council shifted online money gaming to a 28% GST on the full value of deposits or bets, replacing the earlier approach of taxing only the platform fee. That framework took effect from 1 October 2023 through amendments to the GST law and rules. The tax department maintains the 2023 amendments as only clarificatory in nature.
