In a landmark dual ruling, the Supreme Court upheld the constitutional validity of a retrospective 28% GST levy on online gaming companies and affirmed state laws banning real-money gaming platforms. This decision, based on the classification of betting/gambling as 'res extra commercium', severely impacts the online gaming industry and clarifies the legislative competence of both the Centre and States.
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1-Minute Revision
- ›GST Rate Upheld: 28% on full stake value
- ›SC Bench: Justices J.B. Pardiwala and R. Mahadevan
- ›Target this Data: 28% GST on full stake value (clarified August 2023, effective Oct 1, 2023).
- ›Target this Nodal Body: Directorate General of GST Intelligence (DGGI) and GST Council.
- ›Target this Legal Point: Entry 34 of List II (State List) for 'Betting and gambling' and the legal doctrine of 'res extra commercium'.
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