The much-watched Gameskraft GST case, which has significant implications for India’s entire online gaming and casino ecosystem, is officially scheduled to resume in the Supreme Court on July 15, 2025. The case now features as Item 40 before a bench comprising Justices J.B. Pardiwala and R. Mahadevan and has been marked as a part heard matter in the court’s cause list for upcoming Tuesday.
The matter had reached final hearing in May 2025 and was argued over 12 days until the court’s summer recess on May 22. It involves the central question of whether online games like rummy and fantasy sports constitute “games of skill” or “games of chance,” and whether the entire entry amount collected from players should attract 28% Goods and Services Tax (GST).
The case gained prominence after the Directorate General of GST Intelligence issued a ₹21,000 crore tax notice to Gameskraft Technologies in 2022. While the Karnataka High Court quashed the notice in 2023 by ruling rummy as a game of skill, the Supreme Court later stayed the order and took up the matter for final adjudication. The outcome now potentially impacts 158 similar cases involving tax claims amounting to ₹1.53 lakh crore.
The government, through Additional Solicitor General N. Venkataraman, has argued that amounts collected represent actionable claims akin to betting or gambling and are thus taxable at the highest slab. On the other hand, senior counsels representing Gameskraft and various industry federations, have maintained that skill-based games do not constitute gambling and should not be subjected to punitive taxation.
The final phase of hearings is expected to involve rebuttals from the government and industry bodies. The Supreme Court’s verdict is anticipated to have a ripple effect across India’s gaming and entertainment sector, affecting policy clarity, investor confidence, and future regulatory frameworks.
