Indian online gaming companies seek Supreme Court review of 28% GST ruling
Three online gaming operators have asked India’s Supreme Court to reconsider its decision upholding the 28 per cent GST on the full face value of bets.
India.- Three online gaming companies have petitioned India’s Supreme Court to reconsider its May 27 ruling on India’s 28 per cent Goods and Services Tax (GST) and validated retrospective tax demands. Play Games24x7, Junglee Games and Sachiko Gaming have asked the court to review the judgement, which found that real-money online games, including fantasy sports, are taxable on the full face value of bets rather than only on platform fees or gross gaming revenue.
The original ruling also confirmed that the 2023 GST amendments merely clarified existing law rather than introducing a new tax regime, allowing authorities to pursue retrospective tax claims issued by the Directorate General of GST Intelligence (DGGI).
The gaming industry has argued that the tax should apply only from October 1, 2023, when the amended GST provisions came into force, warning that the retrospective demands threaten the financial viability of operators amid demands for INR1.12tn (US$13.4bn) against 71 gaming companies. The Supreme Court will determine whether the review petitions present sufficient grounds to reopen the case.
