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India’s 28% GST Court Case Has References to Messi, Friendly Golf Games

The legal arguments in the GST case on gaming apps in India are now ongoing, and both parties have laid out their arguments on record. While the gaming companies have maintained that the GST should be applied to the amount of commission, the government has a logic that the amount should be on the entire money that changes hands, which includes the total deposits of the players. 

The common idea was that the gaming companies could come out of the GST purview by proving that games like rummy and poker are games of skill. However, the Government’s stand now is that any game, whether it is of skill or not, should come under the 28% GST purview as long as there is any wager on it.

The arguments then meandered towards friendly wagers on sports, which included a Lionel Messi reference and even the mandatory game of golf among well-heeled circles.

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ALSO READ: Indian Government Says GST Valid On Any Online Game With Wager Component

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The “Messi GST India case” refers to an instance where the Indian government cited Lionel Messi in its argument before the Supreme Court to support its position that fantasy sports should be classified as gambling.

The government contended that creating virtual teams based on real-world player performances, over which participants have no control, is akin to betting on how many goals a player like Messi might score. As such, it argued that fantasy sports fall under the category of gambling and should therefore be subject to a 28% Goods and Services Tax (GST).

Further, the Government counsel also stated that if wagering on any kind of success at a game would attract a tax, even a friendly wager on a golf game would attract tax. The case is still pending, and the entire Indian gaming industry is waiting with bated breath to know the response to this case.

Gutshot Magazine provides all the latest updates and news about the real money gaming and poker industry. From poker tournament itineraries to winners lists to interviews with some of the biggest names in the industry, we also keep a tab on any federal and corporate decisions that might impact the real money gaming and poker industry.

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