Log in or register
Share on LinkedInShare on LinkedIn

ARTICLE · 17 OCTOBER 2023

Analysis Of The Legislative Framework Under GST Relating To Online Gaming Industry

Samvad Partners
Explore more from Samvad Partners

Since the pandemic, the online gaming industry has witnessed exponential growth. As the revenue of the industry grew, it came under intense scrutiny by the Tax department.

IndiaMedia, Telecoms, IT, Entertainment
Aditya Bhattacharya
Aditya Bhattacharya
Author LinkedIn connections

Since the pandemic, the online gaming industry has witnessed exponential growth. As the revenue of the industry grew, it came under intense scrutiny by the Tax department. Before 01.10.2023, the online gaming industry was paying 18% Goods and Services Tax ('GST') on the Platform fee charged by them and not on the winning money or deposit amount. W.e.f. 01.10.2023, the GST rate has been increased to 28% and on the full value of consideration for online gaming irrespective of whether the gaming activity is a game of skill or a game of chance.

'Game of chance' v. 'Game of skill'

The Tax department issued notices to various online gaming platforms proposing to levy 28% GST instead of 18% on the ground that these are not 'game of skill' but 'game of chance' and equivalent to betting or gambling. One such notice came to be challenged before the Rajasthan High Court1. Further, a writ petition seeking to initiate criminal proceedings2 against the Platforms and a Public

We operate a free-to-view policy, asking only that you register in order to read all of our content. Please login or register to view the rest of this article.

Register for freeORLog in

Related Articles

Legal Intelligence Newsletters: sign up for the latest legal and regulatory news on your chosen topics

Read more about

Related Comparative Guides

See more popular content from

Article

Instagram’s 2026 AI Labelling Rules

Instagram's 2026 policy shift introduces mandatory AI-generated profile labels and penalties for non-disclosure, creating new compliance challenges at the intersection of platform governance and India's statutory framework for synthetically generated information. How do these overlapping regimes affect brands, influencers, and content creators operating in India's digital ecosystem?
IndiaMedia, Telecoms, IT, Entertainment
Global Advertising Lawyers Alliance (GALA)
Global Advertising Lawyers Alliance (GALA)
Article

Telegram Ban In India – The Rise Of Digital Sovereignty

The Delhi High Court's landmark ruling in Telegram FZ LLC v. Union of India addresses whether Section 69A of the IT Act permits the government to block an entire platform rather than specific content. Following the NEET-UG 2026 paper leak scandal, where fraudulent channels circulated fake exam papers affecting millions of aspirants, the court upheld the Centre's power to impose a platform-wide ban on Telegram, sparking intense debate about the boundaries between examination integrity and digital censorship.
IndiaMedia, Telecoms, IT, Entertainment
Hammurabi & Solomon Partners
Hammurabi & Solomon Partners
Article

The Promotion And Regulation Of Online Gaming Act, 2025 And The Promotion And Regulation Of Online Gaming Rules, 2026

The Act, the Rules and the OGAI are therefore simultaneously operational. The prohibition provisions under Chapter III of the Act, the criminal penalties under Chapter V of the Act and the institutional framework under the Rules are all in effect. There is effectively no formal compliance window for core prohibitions and penalties; stakeholders should treat the regime as immediately operational and adjust business models without delay.
IndiaMedia, Telecoms, IT, Entertainment
King, Stubb & Kasiva
King, Stubb & Kasiva
Article

Is Meta Still Just An Intermediary? Why India Is Rethinking Safe Harbour

In mid-September 2026, government sources said Meta Platforms’ Indian operations, Facebook, Instagram and Threads, should no longer be viewed merely as an “internet intermediary” but should also be treated as a “service provider,” arguing that the company’s monetised algorithms actively decide what content gets amplified, distributed and shown to whom. That is a government position, not a new statutory classification, and this article returns to that distinction below.
IndiaMedia, Telecoms, IT, Entertainment
S.S. Rana & Co.
S.S. Rana & Co.
Article

DOT Notifies Telecom Network Authorisation Rules, 2026: What Has Changed?

On 20 July 2026, the Department of Telecommunications (DoT) notified the Telecommunications (Authorisation for Telecommunication Network) Rules, 2026 (Rules). The Rules operationalise Section 3(1)(b) of the Telecommunications Act, 2023 and establish a framework for six categories of telecommunication network authorisations: infrastructure provider (IP) (formerly, IP-I), digital connectivity infrastructure provider (DCIP), internet exchange point (IXP) provider, satellite earth station gateway (SESG) provider, cloud-hosted telecommunication network (CTN) provider and mobile number portability (MNP) provider.
IndiaMedia, Telecoms, IT, Entertainment
Khaitan & Co.
Khaitan & Co.