GST on online games in India
GST provisions related to online gaming services were in effect from the beginning of the GST regime, which is July 1, 2017. , online gaming services were subject to GST in India. The GST rate applicable to online gaming services was 18%. This rate could vary based on the specific type of online gaming service and its classification under GST.
Online gaming services were categorized as “Online Information Database Access and Retrieval Services” (OIDAR) under GST. OIDAR services refer to services provided over the internet or an electronic network and the nature of which renders their supply essentially automated and involving minimal human intervention. Various online services, including online gaming, fell under this category.
Here are some key points related to GST on online gaming services:
Applicability: If an entity provided online gaming services to customers in India and met the criteria of OIDAR services, they were required to register for GST in India and charge GST on the services provided.
GST Rate: The standard GST rate of 18% was applicable to online gaming services falling under the OIDAR category. This rate might change depending on any updates made by the GST council.
Registration: Entities providing online gaming services that were subject to GST were required to register for GST, regardless of their location. Non-resident entities providing services to customers in India were also required to register under the GST regime.
Tax Collection at Source (TCS): E-commerce operators that facilitated online gaming services were also liable to collect Tax Collection at Source (TCS) on the consideration received by them on behalf of the suppliers. This TCS was deposited with the government and attributed to the supplier’s GST liability.
Place of Supply: The place of supply for OIDAR services, including online gaming, was determined based on the location of the recipient.
Reverse Charge Mechanism: For services provided by non-resident entities to recipients in India, the reverse charge mechanism applied. This means the recipient of the service was liable to pay the GST instead of the non-resident supplier.
Please note that GST laws and regulations can change over time, and new developments might have occurred after my last update in September 2021. For the most current and accurate information, I recommend consulting the official website of the Indian GST authorities or seeking advice from a tax professional.