The Supreme Court has scheduled May 5, 2025, for the final hearing in the high-stakes Gameskraft tax evasion case.
As reported by The Economic Times, the case pertains to show-cause notices issued by the Directorate General of GST Intelligence (DGGI) to the online gaming company. The firm is accused of a staggering tax liability amounting to ₹1.12 lakh crore. The overall estimated financial impact of the case, which includes multiple gaming companies, is ₹2.5 lakh crore—making it one of the largest tax disputes in India’s history.
Gaming companies have challenged the government’s interpretation of Rule 31A of the CGST Rules, which imposes 28% GST on the face value of each bet. The industry argues that this rule applies only to gambling and betting, not to games of skill like rummy, poker, and fantasy sports.
A bench comprising Justices J B Pardiwala and R Mahadevan heard the matter on April 8. During the proceedings, senior counsels for the gaming companies, including ASG N. Venkatraman, sought an adjournment. They stated that they had expected only a date-fixing exercise.
Justice Pardiwala clarified that the bench had reviewed the case in full and was ready to proceed. “We understood the matter is being heard today,” the bench remarked, noting that all directions were already on record.
Despite initial reluctance, the court allowed the adjournment on “fervent request” from the counsels. It was made clear that no further adjournments would be entertained. The final hearing is now listed for the afternoon of May 5 and is expected to continue throughout the entire week for case completion.
The government argues that online platforms offering games for money between July 2017 and October 2023 fall under the definition of “actionable claims”—similar to gambling and betting—and thus should be taxed under Rule 31A.
A senior legal counsel, speaking anonymously, said, “The industry has a strong case on its merits. Numerous High Court rulings support our position, and decades of jurisprudence have consistently distinguished games of skill from gambling and betting.”
Source from: https://g2g.news/gst-on-online-gaming/sc-to-hear-%e2%82%b92-5-lakh-crore-gaming-gst-case-on-may-5/
