The online gaming industry in India has undergone remarkable growth in the recent years. According to few reports, the industry envisaged to reach a market size of INR 290 billion by end of the year 2025 i.e., approximately USD 4 billion, growing at a CAGR of 21.4% from 2020 to 2025. Wherein, the mobile gaming segment is the prodigious and burgeoning segment in Indian online gaming market, accounting for nearly 85% of the market share. Whereas, e-sports market is expected to grow rapidly in the coming years, with the potential to reach a market size of INR 11 billion (approximately USD 150 million) by 2025 (Arora 2019). Accordingly, In light of the ever increasing popularity of online gaming, the government of Indian government has proposed to include specific clauses pertaining the taxability of online games in the Finance Bill of year 2023. Hence, this chapter shall explore the connotation of imposing taxes on online gaming industry in India.