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SUPREME COURT OF INDIA
J.B. PARDIWALA, R. MAHADEVAN, JJ.
Directorate General Of Goods And Services Tax Intelligence (HQS) & Ors. – Appellants
Versus
Gameskraft Technologies Private Limited And Ors. – Respondents
Civil Appeal No(s). 8241 – 8244 of 2026 [Arising Out Of SLP (C) Nos. 19366 – 19369 of 2023] With Civil Appeal No. 8240 of 2026 [Arising Out Of SLP (C) No. 12201 Of 2024] With Criminal Appeal No. 2933 Of 2026 [Arising Out Of SLP (CRL) No. 2213 Of 2020] With Writ Petition (Civil) No. 1374 Of 2023 With Writ Petition (Civil) No. 1384 Of 2023 With Transferred Case (Civil) No. 24 Of 2024 With Transferred Case (Civil) No. 25 Of 2024 With Transferred Case (Civil) No. 26 Of 2024 With Transferred Case (Civil) No. 27 Of 2024 With Transferred Case (Civil) No. 29 Of 2024 With Transferred Case (Civil) No. 30 Of 2024 With Transferred Case (Civil) No. 31 Of 2024 With Transferred Case (Civil) No. 32 Of 2024 With Transferred Case (Civil) No. 33 Of 2024 With Transferred Case (Civil) No. 34 Of 2024 With Transferred Case (Civil) No. 35 Of 2024 With Transferred Case (Civil) No. 36 Of 2024 With Transferred Case (Civil) No. 39 Of 2024 With Transferred Case (Civil) No. 40 Of 2024 With Transferred Case (Civil) No. 41 Of 2024 With Transferred Case (Civil) No. 42 Of 2024 With Transferred Case (Civil) No. 43 Of 2024 With Transferred Case (Civil) No. 44 Of 2024 With Transferred Case (Civil) No. 45 Of 2024 With Transferred Case (Civil) No. 46 Of 2024 With Transferred Case (Civil) No. 47 Of 2024 With Transferred Case (Civil) No. 48 Of 2024 With Transferred Case (Civil) No. 49 Of 2024 With Transferred Case (Civil) No. 51 Of 2024 With Transferred Case (Civil) No. 52 Of 2024 With Transferred Case (Civil) No. 53 Of 2024 With Transferred Case (Civil) No. 54 Of 2024 With Writ Petition (Civil) No. 268 Of 2024 With Writ Petition (Civil) No. 300 Of 2024 With Writ Petition (Civil) No. 350 Of 2024 With Writ Petition (Civil) No. 378 Of 2024 With Writ Petition (Civil) No. 429 Of 2024 With Writ Petition (Civil) No. 447 Of 2024 With Writ Petition (Civil) No. 456 Of 2024 With Writ Petition (Civil) No. 541 Of 2024 With Writ Petition (Civil) No. 545 Of 2024 With Writ Petition (Civil) No. 568 Of 2024 With Writ Petition (Civil) No. 605 Of 2024 With Writ Petition (Civil) No. 646 Of 2024 With Writ Petition (Civil) No. 720 Of 2024 With Writ Petition (Civil) No. 858 Of 2024 With Writ Petition (Civil) No. 50 Of 2025 With Writ Petition (Civil) No. 51 Of 2025 With Writ Petition (Civil) No. 52 Of 2025 With Writ Petition (Civil) No. 217 Of 2025 With Writ Petition (Civil) No. 258 Of 2025 With Writ Petition (Civil) No. 406 Of 2025 With Writ Petition (Civil) No. 412 Of 2025 With Writ Petition (Civil) No. 467 Of 2025 With Writ Petition (Civil) No. 673 Of 2025 With Writ Petition (Civil) No. 692 Of 2025 With Writ Petition (Civil) No. 732 Of 2025 With Writ Petition (Civil) No. 880 Of 2025 With Writ Petition (Civil) No. 923 Of 2025 With Writ Petition (Civil) No. 1032 Of 2025 With Writ Petition (Civil) No. 1098 Of 2025 With Writ Petition (Civil) No. 1171 Of 2025 With Writ Petition (Civil) No. 1251 Of 2025 With Writ Petition (Civil) No. 265 Of 2026
Decided On : 27-05-2026
JUDGMENT :
R. MAHADEVAN, J.
1. Leave granted in respect of SLP (C) Nos. 19366 – 19369 of 2023, SLP (C) No. 12201 of 2024 and SLP (Crl.) No. 2213 of 2020. For ease of reference and clarity of adjudication, this judgment is arranged under the following heads:
| S.NO. |
| HEADS |
| I |
| PREFACE |
| II |
| FACTUAL BACKGROUND AND RELIEFS SOUGHT |
| III |
| CONTENTIONS OF THE PARTIES • SUBMISSIONS • REPLY SUBMISSIONS |
| IV |
| ANALYSIS AND FINDINGS |
|
| A | ISSUES FOR CONSIDERATION |
|
| B | BETTING AND GAMBLING |
|
| C | CONSTITUTIONAL VALIDITY OF THE IMPUGNED LEVY IN THE CONTEXT OF BETTING AND GAMBLING |
|
| D | GST FRAMEWORK GOVERNING BETTING AND GAMBLING TRANSACTIONS • STATUTORY SCHEME UNDER THE GST ACT • ACTIONABLE CLAIMS ARISING FROM BETTING AND GAMBLING TRANSACTIONS AND THE NATURE OF SUPPLY • CONSIDERATION, VALUATION AND MEASURE OF LEVY • CHARACTERISATION OF ONLINE GAMING TRANSACTIONS : SUPPLY OF GOODS OR SERVICES • RATE OF TAX AND VALIDITY OF NOTIFICATIONS |
|
| E | VALIDITY OF RULE 31A • VALIDITY OF RULE 31A WITHIN THE STATUTORY FRAMEWORK OF SECTION 15 • STATUTORY FRAMEWORK GOVERNING DELEGATED LEGISLATION • GST COUNCIL RECOMMENDATIONS SUPPORTING RULE 31A • SCOPE AND AMBIT OF SECTION 15 (4) • INDEPENDENT RULE-MAKING POWER UNDER SECTION 164 • EFFECT OF ABSENCE OF NOTIFICATION UNDER SECTION 15 (5) • APPLICABILITY OF RULE 31A(3) BEYOND HORSE RACING TRANSACTIONS • MEANING OF “CHANCE TO WIN” |
|
| F | 2023 AMENDMENT – PROSPECTIVE OR RETROSPECTIVE? |
|
| G | VALUATION OF SUPPLY IN ONLINE GAMING, FANTASY SPORTS AND CASINO TRANSACTIONS UNDER THE GST FRAMEWORK • ONLINE GAMING • FANTASY SPORTS • CASINOS |
| V |
| CONCLUSION |
| VI |
| RESULT |
2. Having regard to the commonality of issues involved, which are interlinked and intertwined, all the matters were heard analogously and are being disposed of by this common judgment.
I. PREFACE
3. Few questions in fiscal jurisprudence have generated as much constitutional significance as whether activities traditionally understood in one legal context undergo a transformation in their legal characterization when mediated through technology-driven commercial structures. From traditional forms of wagering and gaming to contemporary digital platforms facilitating online participation across jurisdictions, courts have repeatedly been called upon to delineate the boundaries between skill and chance, commerce and speculation, regulation and prohibition. The advent of online gaming has brought these questions into renewed focus, requiring established legal principles to be applied within an evolving technological landscape.
3.1. The present batch of matters brings that longstanding debate into the framework of the Goods and Services Tax1[For short, “GST”] regime and the rapidly expanding online gaming ecosystem. The proceedings witnessed extensive submissions by learned Additional Solicitor General of India, learned Senior Counsel, and learned counsel appearing for the parties addressing a wide spectrum of constitutional, statutory and jurisprudential issues. What initially arose as challenges to individual show cause notices has ultimately assumed the dimensions of a nationwide constitutional controversy involving transferred cases, writ petitions and special leave petitions raising common questions of law.
3.2. At the core of the dispute lies the question of legal characterization. The Court is called upon to determine whether activities conducted on online gaming platforms, casinos, betting platforms and allied establishments constitute taxable supplies of actionable claims arising from betting and gambling arrangements. The controversy concerns the constitutional limits of legislative and delegated fiscal powers, the scope and operation of the GST framework, and the manner in which traditional legal doctrines are to be applied to technology-driven commercial activities.
3.3. The issues assume considerable significance not merely because of t
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