India, May 6 -- The Directorate General of GST Intelligence (DGGI) has reportedly told the Supreme Court that online gaming companies are engaging in activities that qualify as betting and gambling, which are subject to the GST.

The DGCI's stance is that amounts staked by players in these games are taxable under the GST framework.

Additional solicitor general N Venkataraman appearing for DGGI told a bench led by Justice JB Pardiwala that the department is taxing "speculative outcomes," that amounts to betting and gambling and not the online/offline gaming, according to an ET report.

He highlighted that games like rummy fall under gambling and speculative outcomes generated from them are subject to taxing.

"Speculative outcomes are con...