GST Council Raises Tax on Online Gaming and Betting to 40%

The GST Council has increased the tax on online real money gaming and betting from 28% to 40%, with the higher rate applying to the full face value of bets rather than just platform commission.

The move, aimed at boosting government revenue, has triggered concerns over the industry’s viability and its effect on user participation.

This marks the second major tax hike in less than two years; the Council had earlier, in October 2023, introduced a uniform 28% GST on the full bet value.

The latest decision reflects tighter regulatory scrutiny of India’s rapidly growing online gaming sector.