UPSC Prelims Practice Questions — Organised online gaming comes under GST regime, states SC

Q1. In its 2026 judgment in DGGI v. Gameskraft Technologies, the Supreme Court held that, for the purposes of the GST regime, online money-gaming operators are best characterised as which one of the following?

  • A. Suppliers of actionable claims in the nature of betting and gambling
  • B. Intermediaries merely facilitating supplies between competing players
  • C. Pure agents collecting player deposits in a fiduciary capacity
  • D. Suppliers of online information and database access/retrieval services

Q2. With reference to the Supreme Court's 2026 ruling on GST for online money gaming, consider the following statements: 1. GST was levied on the full value of the stakes deposited by players, and not merely on the platform fee or commission. 2. The levy applies irrespective of whether the underlying game is one of skill or of chance. 3. The Court held the CGST (Amendment) Act, 2023 provisions to be clarificatory and retrospective in operation. 4. The Court confined the levy to games of pure chance and exempted fantasy sports from GST. Which of the statements given above are correctly identified?

  1. GST was levied on the full value of the stakes deposited by players, and not merely on the platform fee or commission.
  2. The levy applies irrespective of whether the underlying game is one of skill or of chance.
  3. The Court held the CGST (Amendment) Act, 2023 provisions to be clarificatory and retrospective in operation.
  4. The Court confined the levy to games of pure chance and exempted fantasy sports from GST.
  • A. 1, 2 and 3
  • B. 1 and 4 only
  • C. 2, 3 and 4
  • D. 1, 2, 3 and 4

Q3. Following the CGST (Amendment) Act, 2023, the term 'specified actionable claim' brings a defined set of activities within the GST net — betting, casinos, gambling, horse racing, lottery and online money gaming. How many activities does this set comprise?

  • A. Five
  • B. Six
  • C. Seven
  • D. Four

Q4. With reference to the statutory basis of GST on actionable claims, consider the following statements: 1. Section 2(52) of the CGST Act, 2017 defines 'goods' so as to include actionable claims. 2. 'Actionable claim' under the CGST Act carries the same meaning as in Section 3 of the Transfer of Property Act, 1882. 3. Under Schedule III, actionable claims other than lottery, betting and gambling are treated as neither a supply of goods nor a supply of services. 4. Section 15 of the CGST Act, 2017 governs the composition levy available to small taxpayers. Which of the above is/are NOT correct?

  1. Section 2(52) of the CGST Act, 2017 defines 'goods' so as to include actionable claims.
  2. 'Actionable claim' under the CGST Act carries the same meaning as in Section 3 of the Transfer of Property Act, 1882.
  3. Under Schedule III, actionable claims other than lottery, betting and gambling are treated as neither a supply of goods nor a supply of services.
  4. Section 15 of the CGST Act, 2017 governs the composition levy available to small taxpayers.
  • A. 1 and 2
  • B. 2 and 3
  • C. 1, 3 and 4
  • D. 4 only

Q5. Consider the following statements comparing the GST treatment of online money gaming before and after the 2023 amendments: 1. Before the amendment operators effectively paid GST only on the platform fee/commission, whereas from 1 October 2023 GST applies on the full deposit value. 2. Rule 31B values the supply of online money gaming on the total amount deposited with the supplier, while Rule 31C prescribes valuation of actionable claims in casinos. 3. The 2023 amendment reduced the rate from 28% to 18% for formats classified as games of skill. Which of the statements given above is/are correct?

  1. Before the amendment operators effectively paid GST only on the platform fee/commission, whereas from 1 October 2023 GST applies on the full deposit value.
  2. Rule 31B values the supply of online money gaming on the total amount deposited with the supplier, while Rule 31C prescribes valuation of actionable claims in casinos.
  3. The 2023 amendment reduced the rate from 28% to 18% for formats classified as games of skill.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q6. The insertion of Rules 31B and 31C, prescribing valuation of online money gaming and casino actionable claims on full face/deposit value, came into force with effect from which date?

  • A. 1 October 2023
  • B. 1 July 2017
  • C. 1 August 2023
  • D. 1 April 2024

Q7. Consider the following statements regarding the GST Council's decision on taxing online gaming, casinos and horse racing: 1. The 28% levy on full face value was based on the Second Report of the Group of Ministers (GoM) on Casinos, Race Courses and Online Gaming. 2. The Council recommended the levy irrespective of whether the activity is a game of skill or a game of chance. 3. The Council recommended taxing casinos on gross gaming revenue but online gaming on full face value, thereby applying different valuation bases to the two. Which of the statements given above is/are correct?

  1. The 28% levy on full face value was based on the Second Report of the Group of Ministers (GoM) on Casinos, Race Courses and Online Gaming.
  2. The Council recommended the levy irrespective of whether the activity is a game of skill or a game of chance.
  3. The Council recommended taxing casinos on gross gaming revenue but online gaming on full face value, thereby applying different valuation bases to the two.
  • A. 1 and 2 only
  • B. 1 and 3 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q8. With reference to the GST Council's decision on 28% taxation of actionable claims on full face value, consider the following statements: 1. Casinos were among the activities brought under the 28% full-face-value levy. 2. Horse racing was among the activities so covered. 3. Online money gaming was among the activities so covered. 4. The underlying recommendation was made by a Group of Ministers chaired by the Chief Justice of India. Which of the above is/are NOT correct?

  1. Casinos were among the activities brought under the 28% full-face-value levy.
  2. Horse racing was among the activities so covered.
  3. Online money gaming was among the activities so covered.
  4. The underlying recommendation was made by a Group of Ministers chaired by the Chief Justice of India.
  • A. 1 and 2
  • B. 4 only
  • C. 3 and 4
  • D. 1, 3 and 4

Q9. Consider the following statements on the skill-versus-chance doctrine in Indian gambling law: 1. In State of Andhra Pradesh v. K. Satyanarayana (1967), the Supreme Court held rummy to be preponderantly a game of skill. 2. In Dr. K.R. Lakshmanan v. State of Tamil Nadu (1996), the Supreme Court held horse racing to be a game of mere skill. 3. In the Gameskraft case (2026), the Supreme Court held that the skill-versus-chance distinction determines GST liability once real money is staked. Which of the statements given above is/are correct?

  1. In State of Andhra Pradesh v. K. Satyanarayana (1967), the Supreme Court held rummy to be preponderantly a game of skill.
  2. In Dr. K.R. Lakshmanan v. State of Tamil Nadu (1996), the Supreme Court held horse racing to be a game of mere skill.
  3. In the Gameskraft case (2026), the Supreme Court held that the skill-versus-chance distinction determines GST liability once real money is staked.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q10. Consider the following statements about the Tamil Nadu Online Gaming Authority (Real Money Games) Regulations, 2025: 1. They restrict access to real-money gaming platforms during 'blank hours' between midnight and 5 a.m. 2. They mandate KYC verification, including Aadhaar-based authentication, and bar persons below 18 years from real-money games. 3. They impose a nationwide prohibition on all real-money online games across every State of India. Which of the statements given above is/are correct?

  1. They restrict access to real-money gaming platforms during 'blank hours' between midnight and 5 a.m.
  2. They mandate KYC verification, including Aadhaar-based authentication, and bar persons below 18 years from real-money games.
  3. They impose a nationwide prohibition on all real-money online games across every State of India.
  • A. 1 and 2 only
  • B. 2 and 3 only
  • C. 1 and 3 only
  • D. 1, 2 and 3

Q11. Under Article 279A of the Constitution, who is the ex-officio Chairperson of the Goods and Services Tax Council?

  • A. The Union Finance Minister
  • B. The Prime Minister of India
  • C. The President of India
  • D. The Union Minister of State in charge of Revenue

Q12. The definition of 'actionable claim' adopted by the CGST Act, 2017 is drawn from which one of the following statutes?

  • A. Section 3 of the Transfer of Property Act, 1882
  • B. Section 2 of the Sale of Goods Act, 1930
  • C. Section 2 of the Indian Contract Act, 1872
  • D. Section 3 of the Specific Relief Act, 1963