SC Witnesses Day 5 of Gameskraft Hearing, Key Arguments Against GST on Online Gaming
AIGF Challenges 2023 GST Amendments
On May 9, 2025, the Supreme Court heard the Gameskraft case for the fifth consecutive day. Senior counsel, representing the All India Gaming Federation (AIGF), argued that substantive tax provisions for online gaming were only introduced in 2023.
He highlighted that the amendments created a legal fiction by redefining “supplier” and including “online money gaming” as a taxable actionable claim. He asserted that such provisions did not exist earlier.
Rule 31A Under Scrutiny
The counsel also criticized Rule 31A of the CGST Rules, describing it as vague and unsuitable for taxing online gaming. He stressed that multiple companies had received show cause notices exceeding their turnover—making it an industry-wide concern.
Gameskraft’s CFO Presents Key Legal Points
Another senior counsel, appearing for Gameskraft CFO Ramesh Prabhu, argued that online gaming platforms do not engage in any form of “supply.” He maintained that these platforms do not supply goods or services under GST.
He supported his stance by citing the Transfer of Property Act’s definition of an “actionable claim.” According to him, activities such as betting and gambling under Entry 62 of List II fall outside the scope of goods and services. Thus, online gaming cannot be taxed unless a supply of actionable claims like betting, gambling, or lotteries is involved.
2023 Amendments Are Not Retrospective
The counsel emphasized that the 2023 amendments introduced online money gaming into the tax net for the first time. He argued that these were not clarificatory and have not been applied retrospectively. Gameskraft, he noted, already pays 18% GST on its platform fee.
Further Arguments to Continue Next Week
Another senior counsel will present arguments on Tuesday, representing online gaming and casino operators. The case will resume on May 13, 2025. The bench has stated its intent to hear the matter daily and wrap up proceedings before the Supreme Court’s summer recess begins on May 24.
