Supreme Court Upholds Retrospective 28% GST on Full Face Value of Bets, Restores ₹21,000 Cr Gameskraft Demand

A bench of Justices J.B. Pardiwala and R. Mahadevan ruled on 28 May 2026 that 28% GST on the full face value of deposits — not just gross gaming revenue — applies retrospectively to RMG platforms, restoring a ₹21,000 crore demand against Gameskraft and upholding state governments' right to ban online money games, per Business Standard (28 May 2026); in a companion ruling the court confirmed that the skill-vs-chance distinction is legally irrelevant once real money enters the equation. Any founder building a product that touches deposits, contest entries, or prize pools must treat this ruling as a hard cap on business viability: the effective tax burden on a typical 10% platform-fee model is now close to 15× its pre-2023 level, and show-cause notices reportedly extend personal liability to directors and founders.

Source: Business Standard ↗