How Indian Gaming Costs Shift With the 2025 GST Overhaul

India’s revised GST rates, effective September 22, mark the most significant reset for the nation’s gaming sector since the tax’s introduction. The new regime restructures rates to just two main slabs of 5% and 18%. This levy applies to items and activities deemed socially harmful or luxurious, such as tobacco, sugary drinks, premium vehicles, and gambling-related activities, including online real-money gaming and betting. 

While real-money gaming is now banned by law and excluded from GST, the reforms affect nearly every other gaming-related expense, from console purchases to tournament tickets and digital subscriptions.

Before Sept 22, 2025:

• Most gaming hardware like consoles, desktops, laptops, motherboards, RAM, SSDs, and standard accessories were taxed at an 18% GST slab.

• Monitors above 32 inches attracted a higher 28% GST rate, making premium high-end monitors significantly more expensive for PC builders.

After Sept 22, 2025:

• Virtually all gaming components, accessories, and consoles now uniformly attract an 18% GST rate.

• Large monitors (above 32 inches) benefit from a notable rate cut from 28% to 18%, easing costs for gamers and PC enthusiasts investing in high-end setups.

Subscriptions and Games

Before Sept 22, 2025:

• Digital subscription services like PlayStation Plus, Xbox Game Pass, and in-game battle passes were taxed at 18% GST.

• This structure remained consistent across most types of digital gaming services.

After Sept 22, 2025:

• The 18% GST rate on such subscriptions remains unchanged.

• Gamers can expect no increase in GST-based costs on recurring digital memberships.

Esports Events and Tickets

Before Sept 22, 2025:

• Tickets priced below INR 500 were exempt from GST.

• Tickets costing more than INR 500 attracted 18% GST.

• Large-scale luxury events, like IPL matches, carried additional cesses or were classified under “luxury entertainment,” sometimes taxed at higher rates near 28%.

After Sept 22, 2025:

• Tickets priced below INR 500 remain exempt.

• Tickets priced at INR 500 and above continue to attract 18% GST.

Professional Streamers and Content Creators

Before Sept 22, 2025:

• Income from Indian streaming platforms (YouTube, Twitch, Rooter) over INR 20 lakh was taxed at 18% GST.

• Earnings from foreign platforms such as YouTube AdSense or Twitch donations were treated as exports of services and exempt from GST.

After Sept 22, 2025:

• The GST structure remains the same for content creators.

• Earnings above INR 20 lakh Indian rupees continue to be taxed at 18%.

• Foreign platform income remains zero-rated under GST’s export of services rules.

Cyber Cafes and Gaming Lounges

Before Sept 22, 2025:

• Gaming lounges and cyber cafes were taxed under the 18% GST slab as entertainment/hospitality services.

After Sept 22, 2025:

• The rate remains unchanged at 18%.

• Businesses may adjust pricing to balance new compliance costs, potentially making visits costlier for consumers.