Supreme Court upholds 28% retrospective Goods and Services Tax (GST) on online gaming

Key facts

• The Supreme Court bench of Justices J.B. Pardiwala and R. Mahadevan upheld the 28% retrospective Goods and Services Tax (GST) on online gaming.
• The court held that online gaming activities involving staking upon uncertain outcomes constitute betting and gambling for the purpose of GST framework.
• The Supreme Court ruled that the GST levy on online gaming is constitutionally valid and does not transgress Articles 366(12) and 366(12A) of the Constitution.
• The top court was hearing an appeal by the Directorate General of Goods and Services Tax Intelligence (Headquarters) against a Karnataka High Court judgement.
• The Karnataka High Court had quashed a GST department show cause notice issued to GamesKrraft Technologies Pvt Ltd seeking payment of Rs 21,000 crores dues, and the Supreme Court had stayed that High Court decision in May 2023.