Supreme Court on GST and Online Gaming: Tax Applies on Betting and Gambling Irrespective of Skill or Chance
The Supreme Court ruled that online gaming platforms are subject to 28% GST on the full face value of bets, treating them as betting and gambling regardless of skill.Summary
The Supreme Court of India has ruled that online gaming, fantasy sports, and casino activities involving the staking of money on uncertain outcomes constitute 'betting and gambling' for GST purposes, irrespective of whether the game is based on skill or chance. The Court held that the operators of these platforms are the suppliers of 'actionable claims'—which are classified as 'goods' under Section 2(52) of the CGST Act—and are liable to pay GST at 28% on the total amount deposited or staked, rather than just on the platform fee or commission. The judgment set aside the Karnataka High Court's decision that online rummy was a game of skill and quashed the Bombay High Court's ruling on fantasy sports. Furthermore, the Court declared that the October 2023 amendments to the GST rules are clarificatory and retrospective, restoring the demand of approximately ₹21,000 crore raised against Gameskraft Technologies and remitting the matters to adjudicating authorities for quantification.
(Source：Caclubindia)