Supreme Court seeks Centre’s Response on GST, Income Tax Recovery from Offshore Online Gaming/Gambling Companies [Read Judgement]
Online gaming has been at the centre of numerous legislative debates, with its legality under fire due to the mushrooming of numerous platforms without proper regulation.
![Supreme Court seeks Centre’s Response on GST, Income Tax Recovery from Offshore Online Gaming/Gambling Companies [Read Judgement]](https://images.taxscan.in/h-upload/2025/11/01/2101547-supreme-court-gst-income-tax-offshore-online-gaming-gambling-companies-taxscan.webp "Supreme Court seeks Centre’s Response on GST, Income Tax Recovery from Offshore Online Gaming/Gambling Companies [Read Judgement]")
The Supreme Court of India has sought the Union Government and the Revenue’s response on a writ petition concerning a proposal for the ban of online gaming and gambling platforms that function offshore; and whether they shall be made liable to Goods and Services Tax (GST) and Income Tax within India. Also Read: Online MoneyGamers Watch Out! Promotion and Regulation of Online...
The Supreme Court of India has sought the Union Government and the Revenue’s response on a writ petition concerning a proposal for the ban of online gaming and gambling platforms that function offshore; and whether they shall be made liable to Goods and Services Tax (GST) and Income Tax within India.
The instant writ petition was filed by the Centre for Accountability and Systemic Change (CASC) concerning the legality of online gaming and gambling platforms operating offshore without appropriate regulation or tax compliance.
The petition essentially urges the Apex Court to direct the Centre to harmoniously interpret the Promotion and Regulation of Online Gaming Act, 2025 with corresponding State laws to effectively curb online gambling and betting activities being conducted under the guise of social and e-sports games.
The petitioner, represented by Virag Gupta, Vishal Arun Mishra, Rupali Panwar and Yash Sharma argued that numerous unregistered offshore gaming companies are evading tax liabilities in India while continuing to operate freely through online and app-based platforms.
One of the reliefs sought for by CASC requested that the Union of India issue blocking orders under Section 69A of the Information Technology Act, 2000 against unlawful betting and gambling platforms and direct the Reserve Bank of India (RBI), National Payments Corporation of India (NPCI) and other UPI platforms to prevent financial transactions with such unregistered operators.
A key facet of the petition pertains to the prayer for issuance of directions to recover Goods and Services Tax (GST) and Income Tax from offshore online gaming companies with the assistance of enforcement agencies, including the Enforcement Directorate (ED), Central Bureau of Investigation (CBI) and the Interpol.
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The plea also requested the adoption of stringent measures similar to those under the Tamil Nadu Prohibition of Online Gaming Act, 2022, and called for stronger protection of children’s data that have already been collected by the online gaming companies.
After hearing the submissions, the Division Bench of Justice J.B. Pardiwala and Justice K.V. Viswanathan directed the petitioner’s counsel to serve a complete paper book to V.C. Bharathi, the panel counsel who ordinarily represents the Revenue Department; the Revenue counsel was further directed to look into the petition and assist the Court in the subsequent hearing to be listed after two weeks.
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The petition is a marker of growing regulatory and fiscal concerns surrounding online gaming and gambling platforms, particularly those that operate outside India and receive funds from Indian users through outbound transfers, where the applicability of Indian tax laws is a grey area that requires proper adjudication.
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