Online gaming firms face survival challenge after Supreme Court GST ruling, tax experts warn

The Supreme Court’s decision upholding GST on the full value of bets placed on online gaming platforms is expected to significantly reshape India’s real-money gaming industry, with tax experts warning of mounting financial pressure, tighter margins and possible consolidation across the sector.

In its ruling on Wednesday, the apex court backed the Revenue Department’s position that online gaming involving stakes qualifies as betting and gambling for GST purposes, effectively endorsing the 28 per cent GST regime introduced in 2023. The GST rate on online gaming was later increased to 40 per cent from September 22, 2025.