The Supreme Court today, July 25, 2025, commenced final arguments in the high-stakes batch of cases concerning Goods and Services Tax (GST) demands totaling approximately ₹1.5 lakh crore.
A division bench of Justices JB Pardiwala and R. Mahadevan is hearing the matter, which has wide-ranging implications for real money gaming (RMG) operators, casinos, and lottery businesses across India. The proceedings began with senior counsel leading arguments on behalf of the gaming companies. Prior to this, the matter was heard for 12 days in May before summer vacation.
This final hearing follows an extensive schedule of arguments from petitioners, which will be concluded on July 17, followed by the government’s rejoinder. The bench asked all parties to conclude the arguments by July 25, when the matter will be reserved for judgement.
The issue gained national attention after Bengaluru-based Gameskraft Technologies Pvt. Ltd. received a ₹21,000 crore GST notice in 2022. While the Karnataka High Court quashed this notice in 2023 recognizing rummy as a game of skill the Supreme Court stayed that ruling, leading to a broader legal review. Subsequently, similar notices were issued to multiple other operators, with the cumulative tax exposure now crossing ₹1.5 lakh crore.
The outcome of this case is poised to shape the regulatory and taxation landscape of India’s booming online gaming sector. A verdict favoring the government could impose severe financial liabilities and set a precedent equating skill-based games with gambling. Conversely, a favorable outcome for the industry would reinforce the legal distinction between skill and chance, potentially encouraging investment and innovation.
As arguments resumed today, the gaming industry and policy observers across the country are watching closely. The Supreme Court’s decision will not only affect the immediate tax liabilities of gaming platforms but also set a definitive framework for future regulation of online games and digital entertainment in India.
Source from: https://g2g.news/gst-on-online-gaming/supreme-court-to-reserve-judgement-in-gameskraft-gst-case-on-july-25/
