Notification No. 03/2023 – IT: Supply of Online Money Gaming

Notification No. 03/2023 – Integrated Tax declares that the supply of online money gaming will now be treated as a supply of goods under the Integrated Goods and Services Tax (IGST) Act, 2017.
This means:
✅ Online money gaming services will be taxed as imported goods
✅ IGST will be levied and collected at the time of import
✅ It ensures fair taxation of foreign-based gaming platforms catering to Indian users
This regulation closes tax loopholes and strengthens GST compliance in the online gaming sector.

Foreign gaming platforms must:
📌 Register under GST in India
📌 Pay IGST on the supply of online money gaming services
📌 Comply with tax regulations to avoid penalties
Since online gaming is now treated as an import of goods, overseas gaming operators must follow Indian tax laws to continue offering services legally.

The classification ensures:
✔️ Higher tax compliance from foreign gaming platforms
✔️ Proper taxation on gaming transactions
✔️ A level playing field between Indian and international gaming operators
By treating online gaming as a supply of goods, the government can better regulate and tax cross-border digital transactions.

Under Notification No. 03/2023 – Integrated Tax, online money gaming is treated as imported goods, which means:
🎰 Games of chance (betting, gambling, casino games, etc.) – 28% IGST
💡 Games of skill – 18% IGST
Foreign gaming companies must ensure correct IGST compliance to avoid penalties.

IGST will be levied and collected from the importer, which in this case is:
✔️ Foreign online gaming platforms supplying services to Indian users
✔️ Payment gateways facilitating cross-border transactions for gaming
Foreign suppliers must comply with GST laws to continue operating in India without legal consequences.

For Indian players:
📌 Foreign gaming services may become costlier due to IGST application
📌 More transparency in taxation for online gaming transactions
📌 Indian players may see price changes in subscription fees and winnings
This move ensures that foreign gaming companies contribute to India’s tax system, just like Indian-based operators.

🚨 Non-compliance can lead to:
❌ Hefty penalties and fines for foreign gaming operators
❌ Blocking of platforms that fail to register for GST
❌ Legal action from the Indian government
To operate legally in India, foreign gaming companies must register for GST and pay IGST on online gaming transactions.

To comply with Notification No. 03/2023 – Integrated Tax, gaming platforms should:
1️⃣ Register for GST in India as a foreign supplier
2️⃣ Charge and collect IGST on gaming transactions
3️⃣ File GST returns (GSTR-5 or other applicable forms) regularly
4️⃣ Appoint an Indian tax representative if required
For seamless GST registration and compliance, consulting a GST expert like Finodha.in can be beneficial.

This notification:
✔️ Protects Indian gaming companies from unfair competition
✔️ Ensures all gaming operators (domestic & international) follow GST laws
✔️ Prevents revenue loss due to tax evasion by foreign gaming platforms
By applying IGST to imported gaming services, the government strengthens fair competition in the Indian gaming market.

You can read the official notification on:
🔗 CBIC website – Under ‘GST Notifications’
🔗 GST Portal (gst.gov.in) – Under ‘Legal Updates’
For expert GST compliance assistance, trusted professionals like Finodha.in can help foreign gaming suppliers register, file taxes, and stay compliant with Indian GST laws.