Year after SC hearing, Rs.2.5 L Cr GST sword still hangs over real money gaming industry
India’s real money gaming industry continues to await the Supreme Court’s verdict in the massive Rs.2.5 lakh crore GST dispute. The case revolves around whether online gaming companies should pay 28% GST on the total contest entry amount or only on the platform fee earned by them.
The dispute involves major gaming companies and industry bodies, with the sector warning that an unfavorable judgment could severely impact operations and push several firms toward insolvency.
Industry representatives argue that games of skill should not be treated as gambling and that taxing the entire pooled amount instead of the operator’s commission is commercially unviable.
The uncertainty has also affected investor confidence, slowed funding activity, and caused operational challenges across the sector. Retrospective GST demands dating back to 2017 remain one of the biggest concerns for gaming companies.
Legal experts believe that the GST amendments introduced in 2023 may strengthen the industry’s position since the amendments were prospective in nature and may not justify retrospective tax demands.
