India: Online gaming is considered a service therefore 18% GST must be applied

As per the AAR’s (Maharashtra Authority of Advance Ruling) ruling, online gaming is a service. As a result 18% GST is applicable.


A case was ruled by the AAR that clarifies online gaming services in India in relation to GST. More specifically the AAR ruled that:


  • Regarding E-goods and in this case ‘Online Gaming’, it will be covered under services under the GST Act.
  • For online gaming services the SAC classification is 998439 and GST rate will be at 18%
  • In the situation of procurement from a foreign supplier & supply from out of India, the applicant has to discharge IGST liability under reverse charge mechanism.


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