GST on Online Casino Deposits India: How the 28 Percent Tax Works 2026

GST on online casino deposits India stands at 28% on the full face value of every deposit, effective from 1 October 2023. This resolved a long-running dispute about how GST should apply to online gaming: the GST Council confirmed that the 28% rate applies to total deposits — not only to the platform's commission or rake — making it one of the highest GST rates in any service sector in India.

What Changed in October 2023

Before October 2023, platforms disputed whether GST should apply to total deposits or only to the gross gaming revenue (their margin). The GST Council resolved this through a constitutional amendment and formal notification: 28% GST now applies to the face value of every deposit into any online gaming account — skill-based or chance-based. The Ministry of Electronics and Information Technology administers the online gaming regulatory framework; the MeitY online gaming framework governs which platforms can legally accept deposits from Indian players.

Who Pays the 28% GST?

The GST liability rests with the platform, not you as a player. When you deposit ₹1,000, your account is credited with ₹1,000. The platform then separately remits ₹280 (28% of ₹1,000) to the government. You never see this deduction in your account balance — but it directly constrains the platform's ability to offer bonuses, cashback, and promotional credits.

How the 28% GST Affects Your Gaming Budget

The GST does not reduce your playable balance, but its effect on the gaming ecosystem is real:

• Platforms operating on thin margins reduce welcome bonuses and deposit match offers to compensate

• Some platforms adjust RTP (return-to-player) percentages on certain games to maintain profitability

• For every ₹10,000 deposited across a platform's player base, the platform pays ₹2,800 in GST — leaving ₹7,200 to cover operations, winnings, and margin

GST on Deposits vs TDS on Winnings — Two Separate Taxes

These are frequently confused but are entirely separate:

• GST (28%): Applied to deposits, a platform liability, does not reduce your credited balance, not filed by players

• TDS (30%): Applied to your net winnings at withdrawal under Section 194BA, deducted from your payout, reported in your ITR

As a player, TDS is the tax you directly experience — it reduces what you receive when you withdraw funds.

Does GST Apply to Every Deposit — No Threshold?

Yes. There is no minimum deposit threshold below which the 28% GST is exempt. Every deposit — whether ₹100 or ₹1,00,000 — is subject to the full 28% GST obligation for the platform. The GST applies regardless of whether the player wins or loses, and regardless of the game type.

Offshore Platforms and GST Compliance

Offshore platforms not registered in India are technically liable to collect and remit GST on supplies made to Indian players but many do not comply. This does not exempt you from your own income tax obligations on winnings. If you play on offshore platforms and win, you must still report and pay tax on those winnings. For guidance on filing ITR for offshore gaming income, read how to file ITR for gaming income India.

What Players Actually Need to Do

Your obligations as a player do not include filing or paying GST. Your tax responsibilities are limited to:

1. Reporting net gaming winnings in your ITR under the applicable gaming income schedule

2. Verifying TDS credits in your AIS and Form 26AS

3. Paying any residual self-assessment tax if platform TDS did not cover your full 30% liability

For the broader GST framework covering all online gaming categories, see GST on online gaming India. For the full gaming income tax calculation, see how to calculate gaming income tax in India.