GST on Online Gaming India: The 28% Tax Rule Explained
GST on online gaming in India is 28% on the full deposit face value since October 1, 2023. Previously the rate was 18% on the platform's gross gaming revenue. The change affects domestic platforms only — offshore platforms are not GST-registered in India and do not charge GST on deposits.
The rules around GST on online gaming India changed significantly on October 1, 2023 — from 18% on the platform's gross gaming revenue to 28% on the full face value of every deposit. Understanding the difference matters because the change affects effective odds and platform margins across every game type.
What Changed in October 2023
Until September 30, 2023, online gaming platforms paid GST at 18% calculated on their Gross Gaming Revenue — the margin between total bets and total payouts. From October 1, 2023, following the GST Council's June 2023 amendment, the rate moved to 28% on the full face value of every deposit or contest entry. The change was upheld by the Supreme Court after challenges from several major gaming companies.
How the 28% GST Rate Works in Practice
When you deposit ₹1,000 on a domestic gaming platform, the platform owes GST of ₹218.75 on the ₹1,000 face value. The platform pays this to the government; your full ₹1,000 is credited to your balance. However, the GST liability is built into the platform's economics, which means reduced promotional odds or lower cashback rates compared to pre-October 2023. The official GST framework is maintained by the GST Council of India.
Domestic Platforms vs Offshore
Domestic platforms — registered and operating under Indian law — must charge and remit GST at 28%. Offshore platforms are generally not GST-registered in India, so they do not add GST to deposits. The government has been progressively tightening enforcement against unregistered offshore operators, but the GST obligation currently applies to domestic entities only.
GST and TDS Are Not the Same Tax
GST is a consumption tax applied to the deposit or entry value — charged at the point of playing, regardless of outcome. TDS is an income tax applied to your net winnings at 30% under Section 194BA. Both apply independently: GST hits when you fund your account on a domestic platform; TDS hits when you win and withdraw. For a detailed breakdown of the TDS side, see our TDS on online gaming winnings guide.
GST on Online Gaming: Before vs After October 2023
| Item | Before October 2023 | After October 2023 |
|---|---|---|
| GST Rate | 18% | 28% |
| Taxed On | Gross Gaming Revenue (GGR) | Full deposit / entry amount |
| Platform Type Affected | Domestic only | Domestic only |
| Offshore Treatment | Not charged | Not charged (not GST-registered) |
| Supreme Court Status | Challenged | Upheld (2024) |
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Written by
Rohan KapoorReviews & Trust Editor
Rohan covers platform reviews, bonus terms, and payments and security topics for UU7 and checks every platform claim against its own published terms before it goes to print.
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