BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.
Online gaming in India has evolved rapidly—from casual mobile games to high-stake fantasy sports, esports tournaments, and casino apps. But with this growth comes complexity in taxation. Understanding the gst on online gaming helps developers, platform owners, and gamers navigate the legal landscape and pricing better.
The GST law distinguishes between two types of games:
| Game Type | Nature | GST Classification |
|---|---|---|
| Games of Skill | Based on strategy | Considered a service (18% GST) |
| Games of Chance (Betting/Gambling) | Based on luck | Considered actionable claim (28% GST on full value + Cess) |
So, the gst on gaming varies based on the game’s nature:
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This has reshaped the gst on online gaming in India, affecting players and platforms alike.
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| Service | GST Rate | Notes |
|---|---|---|
| Gaming zones (arcade centres) | 18% | Tickets and entry fees |
| VR game rides, simulators | 18% | Indoor entertainment |
| Redemption/token-based games | 18% | Skill or chance doesn’t affect rate |
The gst on gaming zone is 18% for most offline gaming setups.
| Product | HSN Code | GST Rate |
|---|---|---|
| Gaming consoles (PlayStation, Xbox) | 9504 | 18% |
| Gaming accessories (controllers, headsets) | 8471 / 8473 | 18% |
So, the gst on gaming consoles is fixed at 18% for hardware and accessories.
| Expense | ITC Allowed? |
|---|---|
| Platform development software | ✅ Yes |
| Server costs and cloud hosting | ✅ Yes |
| Marketing and ad spends | ✅ Yes |
| Prize payouts to players | ❌ No |
With GST now being strictly enforced on all online and offline gaming services, staying compliant with the applicable gst on online gaming is critical for business owners and users alike. Whether you’re developing an app or playing on one, understanding the tax impact ensures transparency and avoids legal trouble.
BUSY is a simple, yet powerful GST / VAT compliant Business Accounting Software that has everything you need to grow your business.