India's online gaming industry is booming, with over 50 crore gamers according to a 2024 study by IM and Koan Advisory. As esports gain traction, Indian players have excelled in events like the Asian Games and Commonwealth Games, with the potential for even greater achievements in future Olympics. However, this rapid growth brings a significant threat: illegal offshore gambling platforms that disguise themselves as legitimate gaming applications. These platforms exploit India's regulatory gaps, using aggressive marketing tactics and influencers to mislead users into belleving their services are safe Er Government NATIONAL.

Reeling under the impact of the 28% GST regime, the online gaming industry has found a glimmer of hope after the GST Council recommended the insertion of Section 11A in the CGST Act Insertion of Section 11A will give the power to the GST Council to overrule retrospective tax demands in cases where lower rates were initially paid due to industry-wide trade practices While there is no certainty that the gaming industry would find a relief, the sector, which has seen the top lines of major players fall as much as 60% after imposition of new GST regime, is cautiously optimistic

In February 2023, it was reported that over 10,000 e-gamers in India received income tax notices, bringing to the forefront the issue of the direct tax liability of online gaming earnings. As the landscape continues to evolve with new regulations and amendments, it is crucial to understand the implications and challenges faced by online gamers. Although current year data on the number of notices issued is unavailable, it is essential to follow up on the previous developments and address the ongoing concerns in this sector.