Gurdeep Singh Sachar – 2019 (30) G.S.T.L. 441 (High Court – Mumbai)

Online fantasy sports gaming not to be termed as gambling/ betting services, GST would be applicable on the service fee charged by online platform 

Facts: In this case Gurdeep Singh Sachar v. Union of India, ruled that no betting or gambling is involved in the fantasy games operated by online platform as their result is not dependent upon winning or losing of any particular team in real world on any given day. It further ruled that Goods and Service Tax (“GST”) is not applicable on the entire deposit received from the player but only on the consideration which is payable / collected for the supply of goods or services or both within the platform.


  1. Whether the activities of the respondent amount to ‘Gambling’ \ ‘Betting’?
  2. Whether there is any merit in the allegation of violation of Rule 31A (3) of CGST Rules, 2018 and erroneous classification?

Held: Section 7 of the CGST Act provides that certain activities under Schedule III of the CGST Act shall neither be treated as a supply of services, or supply of goods, and would therefore be exempt from the levy of GST. Schedule III lists “actionable claims, other than lottery, betting and gambling” as one such activity. Rule 31A of the CGST Rules determines the value of supply for the calculation of GST in the case of lottery, betting, gambling and horse racing. Thus, rule 31A is restricted only to such four supplies of actionable claim, has no application in this case.

Note: SLP has been filed in the above case and stay has been granted by Hon’ble Supreme Court [SLP (Criminal) No(s). 42282/2019 dated 06-03-2020]


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