Three leading online gaming companies have asked India’s Supreme Court to review its ruling. This ruling applies a 28% Goods and Services Tax (GST) to the full face value of bets placed on real-money online games.
Play Games24x7, Junglee Games, and Sachiko Gaming filed review petitions after the court’s May 27 decision. That decision upheld the current tax treatment and validated retrospective GST demands.
Operators Seek Review
The Supreme Court previously ruled that the 2023 GST amendment clarified existing law rather than introducing a new tax regime. The decision allowed authorities to continue pursuing retrospective tax claims against online gaming companies.
The petitioning companies are now asking the court to reconsider that interpretation. They argue that the tax should only apply from October 1, 2023, when the amended GST rules took effect.
Industry Faces Massive Tax Demands
The dispute centers on whether GST should be calculated on the full value of player bets. Alternatively, it could be calculated only on platform fees or gross gaming revenue.
According to industry estimates, tax demands totaling INR1.12 trillion (US$13.4 billion) have been issued against 71 online gaming companies. This situation raises concerns about the financial sustainability of the sector.
Supreme Court to Decide Next Step
The Supreme Court will first determine whether the review petitions present sufficient grounds to reopen the case. Until then, the May 27 ruling remains in force.
The outcome could significantly influence the future of India’s online gaming industry. Additionally, it could clarify how the country’s 28% GST regime will be applied to real-money gaming operators.
