In India, games of skill are treated differently from games of chance under the tax laws. The distinction is crucial for businesses operating in the gaming industry.
Popular Indian skill-based games include rummy, poker, and fantasy sports platforms. These are considered games where a player\“s success depends primarily on their knowledge, training, and expertise.
Under Indian tax regulations, games of skill are subject to Goods and Services Tax （GST） but at different rates compared to gambling activities. The current GST framework imposes an 18% tax on the gross gaming revenue of skill-based games.
Many Indian startups in the gaming sector have benefited from this classification, as it provides more legitimacy and clearer regulatory framework for their operations. |
