GST on online gaming – Industry’s compliance a big win for the GST Council The online gaming industry in India has experienced significant growth in recent years.

Propelled by factors such as widespread smart phone penetration, enhanced internet connectivity, a young tech savvy population, and heightened awareness, India is the second-largest market for online gaming globally, in terms of user base.

The online gaming industry has had growth in the country, recording a compound annual growth rate (CAGR) of 28% over the last three years to reach Rs 16,428 crore in FY23 as per a EY report, titled ‘New frontiers – Navigating the evolving landscape for online gaming in India.’

This growth trend for this sunrise sector is now in the throes of an existential crisis due to an uncertain regulatory regime, increased GST burden, and the prospect of ‘retrospective’ taxation.