Online gaming companies are preparing to argue in courts that even if a game of skill is played with money, it remains a skill game, contrary to the GST authority’s interpretation. The Supreme Court is set to hear a case related to this matter on January 8. The GST authority claims that if a game of skill is played with money, it becomes betting or gambling, but the involvement of money does not change the game’s nature.

Online gaming companies have been sent 71 show-cause notices for alleged GST evasion worth Rs 1.12 lakh crore in 2022-23 and 2023-24. The notices are based on the interpretation that any online game played with money is betting, which is taxed at 28%.

The Supreme Court will hear the matter on January 8, following the GST Council’s amendment to the law imposing a 28% tax on all online games involving bets.