Indian gaming stocks fall after Supreme Court backs retrospective 28% GST levy
Shares of major gaming operators fell sharply after India’s Supreme Court upheld the retrospective application of the country’s 28 per cent GST framework.
India.- The shares prices of India-listed gaming companies fell today after the Supreme Court upheld the retrospective application ofthe country’s 28 per cent goods and services tax (GST) regime on igaming. Delta Corp shares were down16 per cent during intraday trading on the Bombay Stock Exchange to INR68 (US$0.70) per share. Nazara Technologies fell by around 3.5 per cent.
The Supreme court ruling confirmed that igaming operators are liable to pay 28 per cent GST on the full face value of player stakes and that the levy applies retrospectively. It ruled that igaming platforms cannot be treated merely as intermediaries and that games involving monetary stakes constitute actionable claims under GST law.
The bench, composed of Justices J. B. Pardiwala and R. Mahadevan, stated that once money is wagered on uncertain outcomes, the distinction between games of skill and games of chance becomes irrelevant for taxation purposes. According to submissions presented before the court, tax notices issued to igaming companies amount to approximately INR917bn (US.5bn). Industry estimates suggest total liabilities, including penalties and interest, could eventually surpass INR2.3tn (US$24.2bn).
