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Blow to gaming firms as SC upholds 28% tax levy
Hindustan Times Chandigarh
|May 28, 2026
In a major setback for online gaming firms, the Supreme Court on Wednesday upheld the constitutional validity of the 28% goods and services tax (GST) levy on online gaming and rejected challenges against retrospective tax demands worth over ₹1.5 trillion.
The ruling is expected to have far-reaching implications for the sector, with lawyers representing gaming firms warning of widespread insolvencies, and raising questions over the constitutional validity of a central law banning online gaming, since the verdict treats it as betting and gambling, a state subject.
The verdict, delivered by a bench of Justice J.B. Pardiwala and Justice R. Mahadevan, dismissed a batch of petitions filed by online gaming companies, casinos, turf clubs and industry bodies challenging GST notices and the legal framework governing taxation of online gaming.
Dit verhaal komt uit de May 28, 2026-editie van Hindustan Times Chandigarh.
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