According to the SC website, Play Games24x7, Junglee Games, and Sachiko Gaming have filed review petitions through law firm Lakshmikumaran & Sridharan.

The petitions ask the court to revisit its decision, contending that the ruling warrants reconsideration on both constitutional and legal grounds, particularly regarding the GST framework and the retrospective tax demands.

The May 27 verdict was a major setback for the industry. It upheld the government’s decision to levy 28 per cent GST on the full face value of bets placed on online gaming platforms and cleared the way for tax authorities to pursue legacy tax demands exceeding ₹1.5 trillion.

The outcome of the review proceedings could have significant consequences for the sector, which has consistently argued that the tax regime and retrospective demands impose an unsustainable financial burden and threaten the viability of several gaming businesses.

“The levy of GST on the supply of actionable claims arising from betting and gambling is constitutionally valid and does not transgress Articles 366(12) and 366(12A) of the Constitution,” the top court said.

The apex court ruled that online gaming platforms cannot be treated as mere intermediaries and that such activities amount to actionable claims under the GST regime. It further observed that the amendments validating the levy were clarificatory in nature and would therefore operate retrospectively.

Gaming companies had challenged the retrospective application of the 28 per cent GST, contending that the Centre’s interpretation of “gambling” under the GST framework ran contrary to decades of judicial precedent laid down by the SC and various high courts.

The apex court, however, held that even skill-based games acquire the character of betting and gambling for GST purposes once money is staked on uncertain outcomes.

Source: Business Standard