Indirect Tax Alert 

The Supreme Court, in the case of Gameskraft Technologies Pvt. Ltd., has upheld the validity of GST levy on online money gaming (including fantasy sports and casinos) and affirmed that staking money on uncertain outcomes — irrespective of the game of skill or game of chance — constitutes betting and gambling. The Supreme Court also ruled that such activities give rise to ‘actionable claims’, which qualify as ‘goods’ under GST law, and consequently attract GST on the entire stake value (and not merely platform fees or commissions).
The Supreme Court also upheld the constitutional validity of the Rules 31A, 31B, 31C of the Central Goods and Services Tax Rules, 2017 (‘CGST Rules’) and clarified that the amendments to the CGST Rules introduced with effect from 1 October 2023 are clarificatory in nature and can apply retrospectively.

Download