Supreme Court confirms organised online gaming comes under GST regime
The Supreme Court upheld the inclusion of organised online gaming under the Goods and Services Tax (GST) regime. The court ruled that such activities, despite involving skill, constitute betting and gambling due to the uncertainty of outcomes and financial stakes involved. This decision supports state regulations aimed at addressing public health concerns related to online gaming addiction and financial losses.
- ▪The Supreme Court confirmed the constitutional validity of taxing organised online gaming under GST.
- ▪The court ruled that online gaming activities involve betting and gambling due to uncertain outcomes and money stakes.
- ▪The decision upheld state bans on certain online games like rummy and poker to protect public health.
Opening excerpt (first ~120 words) tap to expand
The Supreme Court on Wednesday (May 27, 2026) confirmed the constitutional validity of bringing organised online gaming activities with money stakes under the Goods and Services Tax (GST) regime.A Bench of Justices J.B. Pardiwala and R. Mahadevan, in a judgment, declined challenges raised against the levy of GST on actionable claims arising from organised online gaming activities and fantasy sports under the betting and gambling head.Explained | What does the new online gaming Act outline?‘Uncertain outcomes’The court reasoned that even if online gaming involves skill, there was substantial money involved and an uncertainty at stake on the outcome.“Online gaming activities, including fantasy sports and other games played on digital platforms, involving staking upon uncertain outcomes,…
Excerpt limited to ~120 words for fair-use compliance. The full article is at The Hindu — Top.