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.