The Supreme Court of India is concluding its final arguments this week in a significant case concerning the Goods and Services Tax (GST) on online gaming. The core issue is whether online gaming companies should pay a 28% GST on the full value of bets placed by players, and whether this tax should apply retrospectively. The outcome will impact major gaming companies and the future taxation of the rapidly expanding online gaming sector in India.
The Supreme Court of India is set to conclude final arguments this week in the highly anticipated online gaming GST dispute, a case that could significantly impact the taxation framework for India's rapidly growing online gaming sector. A bench led by Justice J.B. Pardiwala will hear closing submissions from petitioners on Tuesday and Wednesday, with a final ruling expected soon after.
At the heart of the dispute is whether online gaming companies should be liable to pay 28% Goods and Services
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FAQ :
The Supreme Court is set to conclude its final arguments this week, with closing submissions heard on Tuesday and Wednesday.
The dispute centres on whether online gaming companies should pay a 28% GST on the entire value of bets placed by players, and if this tax should be applied retrospectively.
Until 2022, most real-money gaming platforms paid an 18% GST solely on the platform fees or commission they earned.
In August 2023, the Central Government amended the Central GST Act, classifying real-money online gaming as 'gambling' and bringing it under the higher 28% GST slab.
Major players involved include Dream11, Gameskraft, Mobile Premier League (MPL), PokerBaazi, Junglee Rummy, and A23 (Ace2Three).
The court will address whether the 28% GST can be imposed retrospectively on online gaming firms and how online gaming transactions should be taxed going forward.