CASE COMMENTARY: DGGI & ORS. V. GAMESKRAFT TECHNOLOGIES PVT. LTD. & ORS.

The commentary analyses the Supreme Court’s decision in Directorate General of Goods and Services Tax Intelligence (Hqs.) v. Gameskraft Technologies Private Ltd., 2026 INSC 595. The issue in the case started with the introduction of the Goods and Services Tax in the online gaming sector. The decision clarifies the issue of retrospectivity of the amendment to the CGST Act, 2023. It affirms the 28% tax levied on online gaming irrespective of whether the game is of skill or chance. It also examines the landmark judgments of the R.M.D. Chamarbaugwalla v. Union of India (1957) and State of A.P. v. K. Satyanarayana (1967). The commentary argues that the court has overridden the previous judgments to displace the skill-dominance framework and introduces the stake-based distinction. It shows how the judgment introduces new terms and raises concerns over the sustainability of the online gaming industry by allowing increased tax rates.