The 2025 GST Council reforms, which will take effect from September 22, are set to transform the gaming ecosystem in India in a myriad of ways.
This is because the impact of the GST revision to two slabs—5 per cent and 18 per cent slabs, in addition to a special 40 per cent rate for "sin goods"—affects various parts of India's gaming ecosystem in different ways.
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From console and gaming PC purchases to esports competition charges, here are 5 ways the GST reforms will affect the gaming space in India:
Subscriptions
Annual or monthly subscription services offered by various consoles/games, such as the Xbox Game Pass, PlayStation Plus, and battle passes in BGMI or Fortnite, will attract 18 per cent GST, because they are treated as a digital service.
Esports events
While small esports events with tickets priced less than Rs 500 are exempt, regular sporting, gaming, and esports events with tickets priced higher than Rs 500 are subject to an 18 per cent GST rate.
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Bigger-scale events like the Indian Premier League (IPL)—and perhaps esports events conducted at such a large scale—would likely be taxed under the "sin goods" category.
Consoles and gaming PCs
PlayStations, Xboxes, Nintendo Switches, gaming PCs—as well as accessories related to them and games—will be taxed at 18 per cent, as they fall under the HSN code 95045000, according to the HSN Database.
Game streamers
Earnings from game streaming on YouTube, Twitch, Rooter, and other such platforms are considered as professional income. If one's annual revenue crosses Rs 20 lakhs, they will be taxed at the 18 per cent rate.
Foreign platform earnings (such as YouTube AdSense in USD) are treated as an export of services (zero-rated for GST).
Streamers on YouTube, Twitch, or Rooter pay tax on Indian platform earnings under individual income tax slabs as professional income. If annual revenue crosses ₹20 lakh, they must register for GST at 18%. Foreign platform earnings (like YouTube AdSense and foreign Twitch donations) are treated as exports of services,and are thus zero-rated for GST, as per the Income Tax Act (1961) and GST-OIDAR rules.
Gaming lounges
Gaming lounges—where players pay hourly or daily rates to play on high-end PCs or consoles—fall under the 18 per cent GST slab, as the lounges are treated as entertainment/hospitality services. Depending on whether the lounges add charges to balance out the tariff rates, the final bill may become steeper.
