Digital economy · Online Gaming

GST on online gaming: 28% on deposit value, not winnings

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The GST Council's October 2023 decision was a shock to the industry: 28% GST on the full face value of each deposit into an online gaming account, not on the platform's fee or rake, not on winnings. Every ₹100 you deposit costs ₹28 in GST collected by the platform.

Provisions

CGST Act, Sec 9 | GST Council 52nd Meeting | Entry 6(i) Schedule III

Analysis

For games of skill (Rummy, Fantasy sports): Previously 18% GST on platform fee. Now 28% on full deposit value. This massively increased the effective cost to players, many platforms saw volume drop significantly. As a player: You don't pay GST directly. The platform builds it into their pricing. But your effective cost per game is now 28% higher. When comparing platforms, check if the displayed amount is pre-GST or post-GST. For gaming companies (if you operate one): Mandatory GST registration regardless of turnover. Monthly GSTR-3B with 28% GST on all deposits.

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