Supreme Court Stays ₹400 Crore GST Demand Proceedings Against Kubera Fantasy, Awaits Gameskraft Ruling

The Supreme Court on Friday stayed further proceedings arising out of a nearly ₹400 crore GST demand raised by the Directorate General of GST Intelligence (DGGI) against Kubera Fantasy Pvt Ltd over allegations that its online fantasy sports platform amounted to betting/actionable claims liable to 28% GST.

A Bench of Chief Justice Surya Kant and Justice Joymalya Bagchi adjourned the matter to await the Supreme Court's decision in DGGI (HQS) v. Gameskraft Technologies Pvt. Ltd where the court is considering whether skill-based gaming services can be taxed as actionable claims.

“Adjourned to await the decision in SLP(C) Nos. 19366-19369/2023. Meanwhile, further proceedings pursuant to impugned order dated 25.03.2026 and Show Cause Notice dated 01.08.2024 shall remain stayed,” the Court said.

According to the company, Kubera Fantasy, which operates kuberafantasy.com, offers skill-based fantasy sports games involving cricket, football, and kabaddi, where users create virtual teams of real-life players and compete based on the statistical performances of those players in actual matches.

Kubera Fantasy has challenged the constitutional validity of Rule 31A of the CGST Rules and Section 15(5) of the CGST Act, contending that these provisions unlawfully permit the levy of 28% GST on the entire contest entry amount, including contributions towards the prize pool, instead of only on the platform fee retained by it.

The company has argued that it merely provides a technology platform connecting users and earns only a platform fee or commission ranging between 1% and 16% of the contest entry fee.

Authorities had raised a demand of ₹200.68 crore towards differential GST for the period from 2019 to September 2023, along with an equivalent penalty, taking the total exposure to about ₹401 crore.

The petition states that the issues raised by Kubera Fantasy overlap with those pending before the Supreme Court in the Gameskraft matter, where the court is considering whether online skill-based gaming platforms can be treated as supplying actionable claims akin to betting and gambling, attracting 28% GST on the full contest entry amount, or whether GST is payable only on the platform fee or commission retained by the operator.

It also refers to petitions filed by the E-Gaming Federation and Play Games24x7 Pvt. Ltd., where similar GST demands and the validity of the statutory provisions are under challenge.