Our Bureau
New Delhi
The Supreme Court on Wednesday upheld 28% GST on online gaming, giving a major setback to companies such as Dream11 and Mobile Premier League. The court said the tax applies on the full value of bets placed through gaming platforms, and held that the levy is valid even when the game involves skill.
The ruling covers retrospective GST demands too, according to reports on the case. The Supreme Court said taxation on online gaming companies is constitutionally valid, and upheld the GST notices issued to the firms over the 28% levy on the full face value of deposits made on their platforms.
The case has been one of the biggest tax disputes in India’s online gaming sector. The court examined whether money staked in games based on skill should still attract GST at the highest rate, and it found that the distinction between skill and chance does not change the tax position when cash is staked.
The decision is expected to affect more than 27 online gaming companies and reshape how the industry is taxed in India. The ruling also comes as a major win for tax authorities, who had argued that the full bet value, not just platform fees, should be taxed.
For Dream11, Games24x7 and other gaming firms, the order raises fresh pressure over past and future tax liability. The top court has now backed the government’s stand that 28% GST can be levied on the full amount involved in online gaming bets, ending a long-running legal battle.
