The Supreme Court is set to reserve its judgment on July 25, 2025, in the Gameskraft GST case, a landmark legal battle with ₹1.5 lakh crore in Goods and Services Tax (GST) demands at stake. This high-profile case has massive implications for real money gaming (RMG) operators, casinos, and lottery businesses across India.
Thank you for reading this post, don't forget to subscribe!A division bench of Justices JB Pardiwala and R. Mahadevan is presiding over the matter, which has seen extensive arguments, including 12 days of hearings in May. The final arguments, which began today, July 16, 2025, will conclude by July 25, 2025, when the judgment will be reserved.
The dispute gained national attention in 2022 when Bengaluru-based Gameskraft Technologies Pvt. Ltd. received a ₹21,000 crore GST notice. While the Karnataka High Court initially quashed this notice in 2023, recognizing rummy as a game of skill, the Supreme Court subsequently stayed that ruling, broadening the legal review. Since then, similar notices have been issued to numerous other operators, pushing the total tax exposure past ₹1.5 lakh crore.
The outcome of this case will significantly influence the regulatory and taxation landscape of India’s rapidly expanding online gaming sector. A ruling in favor of the government could impose severe financial burdens on gaming companies, potentially equating skill-based games with gambling. Conversely, a decision favoring the industry would reinforce the legal distinction between skill and chance, potentially fostering further investment and innovation in the digital entertainment space.
As arguments continue, the gaming industry and policy observers nationwide are keenly awaiting the Supreme Court’s decision, which will not only settle immediate tax liabilities but also establish a definitive framework for the future of online gaming in India.
