SC Granted Stay on All SCN Proceedings Against Online Rummy and Other Games Till Final Disposal

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  • Last Updated on 22 January, 2025

SCN Proceedings

Case Details: Directorate General of Goods and Services Tax Intelligence (HQS) v. Gameskraft Technologies (P.) Ltd. - [2025] 170 taxmann.com 478 (SC)

Judiciary and Counsel Details

  • J.B. Pardiwala & R. Mahadevan, JJ.
  • Gopal Sankaranarayanan, Sr. Adv., Suhaan MukerjiAdarsh KumarSayandeep PahariTanmay SinhaSudipta BhattacharjeeAbhishek ManchandaShourya DasguptaMs Trisha ChandranMs Tanya SrivastavaOnkarArjyadeep RoyMs Jhanvi Dubey, Advs., Mukesh Kumar MaroriaMs Rohini Musa, AORs, Abhishek A RastogiAjay Singh, Advs., Shubham Singh, AOR, Ms Meenal SongireLalitendra GulaniMs Sneha GhoshMs M. Sarada, Advs., Rajeev GulaniMs Amrita Kumari, AORs, Nirmal Devnani, Adv., Arvind Datar, Sr. Adv., Mahesh AgarwalVipin JainMs Sayaree Basu MallikAbhinabh Garg, Advs., E.C. AgrawalaShashank Tripathi, AORs, Anand Kumar V.Aditya Kishor Tyagi, Advs., Harish N. SalveSajan Poovayya, Sr. Advs., V. LakshmikumaranL. Badri Narayanan, Advs., Ms Charanya Lakshmikumaran, AOR, Ms Neha ChoudharyMs Chetna Nayantara RaiMs Umang MotiyaniAyush Agarwal, Mrs Sanjanthi Sajan PoovayyaMs Falguni Gupta, Ms Sanjanthi Sajan PoovayyaMs Raksha Agarwal, Advs., Balbir SinghAbhishek Malhotra, Sr. Advs., Karan SachdevMs Nishtha ChaturvediMs Shivali ShahMs Shruti Mandora, Advs., Shyam Gopal, AOR, Mihir JoshiTushar Hemani, Sr. Advs., Ms Vaibhavi ParikhSandeep SinghiShamik Bhatt, Advs., Ms Anushree Prashit Kapadia, AOR, Karan TalwarPrahlad GadipelliSandeep Sripada, Advs., Siddhant BuxyShaurya Sahay, AORs., Pranay S. ChitaleMs Smiti VermaMs Beleena Biju, Advs., Anand Varma, AOR, Ms Apoorva PandeyMs Adyasha Nanda, Advs., M/S. Dharmaprabhas Law Associates, AOR, Awanish KumarSarthak NemaVierat K. AnandKumar ShashankHarish NaddaVikalp Singh, Advs., Ms Srishty Kaul, AOR, Vikram Nankani, Sr. Adv., Prithwiraj ChoudhuriRajendra BarotSuresh VaranasiDhirajkumar TotalaSagnik ChatterjeeMs Harsha UppalMs Gunjan PandeyAjay RajRohan Satija, Advs., Ms Sonali Jain, AOR, Jay SaytaAkshat Gupta, Advs., Ms Yoothica Pallavi, AOR, Jay Satya, Advs. Rajat Mittal, AOR, Kumar SambhavSuprateek Neogi, Advs., N. Venkataraman, A.S.G., Gurmeet Singh Makker, AOR, Rupesh KumarAnnirudh Sharma-iiUdai KhannaV.C. BharathiChitvan Sinhal, Advs. for the Petitioner.
  • Dhruv Mehta, Sr. Advs., Ms Pritha Srikumar Iyer, AOR, Pradeep NayakMs Anupama HebbarSankeerth VittalKaran GuptaAbhyudaya Shishodia, Advs., M/S. Plr Chambers And Co., AOR, Dr Abhishek Manu Singhvi, Sr. Adv., L. Nidhiram Sharma, Advs., Bhakti Vardhan Singh, AORs, Neeraj Kumar Srivastava, Adv., Sahil Bhalaik, AORs, Tushar GiriSiddharth Anil KhannaRitik AroraShivam MishraGowtham PolankiMs Gulshan Jahan, Advs., Ms Madhumita Bhattacharjee, AOR, Nikhil GoelRaj Singh Rana, A.A.Gs., Akshay Amritanshu, AOR, Ms Drishti SarafMs Pragya UpadhyayMs Siddhi GuptaNaveen GoelNinad LaudZubin DashMs Ishani Shekhar, Advs., Dcosta Ivo Manuel Simon, AOR, Prastut Mahesh Dalvi, AOR, Aadarsh Kumar, Adv. for the Respondent.

Facts of the Case

Earlier, the Honorable High Court in the main petition has held that online/offline/physical/electronic/digital Rummy games and also other games, played with or without stakes on assessee’s Mobile App being substantially and preponderantly games of skill and not of chance, are not covered within expression ‘betting and gambling’ appearing in Entry 6 of Schedule III to Central Goods and Services Tax Act, 2017.

Supreme Court Held

The revenue challenged the order before the Apex Court. The Apex Court noted that the High Court held that a game of skill played with or without stakes is not gambling and not taxable. The Honorable Supreme Court has directed the stay on further proceedings of show cause notices issued to the online gaming companies till the final disposal of main matter and also directed to list this matter for final disposal on 18.3.2025. Thus, the further proceedings of all the impugned show cause notices shall remain stayed till the final disposal of the main matter along with all the matters which are tagged.

List of Cases Reviewed

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