The GST rate will depend on whether a game falls under the "skill" or "chance" category.
Games involving "skill" will be charged 18% GST, while "chance" games will be charged 28%.
The move is aimed at regulating the online gaming industry, which has seen a surge in popularity in recent years.
Several games, such as poker, rummy, and fantasy sports, are considered games of skill and will be charged 18% GST.
However, games such as roulette, blackjack, and slot machines will be charged 28% GST as they are considered games of chance.
The new tax is expected to impact the revenue of online gaming companies operating in India.
Online gaming platforms have expressed their concerns over the proposed tax, saying it could lead to a decrease in user engagement and revenue.
The gaming industry has also raised concerns over the classification of games as "skill" or "chance", which could lead to confusion and disputes.
The proposed tax is yet to be implemented and is currently under review by the government.