Tag: Supreme Court

  • India Supreme Court Urges Stricter Social Media Safeguards for Minors

    India Supreme Court Urges Stricter Social Media Safeguards for Minors

    India is moving toward tighter regulations on children’s access to social media, with the Supreme Court directing the central government to examine statutory safeguards for users under 18. The focus is not on banning internet access for minors but on whether they should be allowed to independently create and manage social media accounts.

    What the Supreme Court Said

    A bench led by Chief Justice of India Surya Kant, along with Justices Joymalya Bagchi and V Mohana, asked the Centre to consider strengthening existing intermediary rules to ensure social media platforms comply with Indian laws concerning minors. Justice Bagchi emphasized that safeguards should have a statutory basis rather than remain mere guidelines. Solicitor General Tushar Mehta assured the court that the government would examine possible measures.

    The proceedings follow a petition filed by the Just Rights for Children Alliance (JRCA), which seeks enforceable safeguards for minors using social media and other digital platforms.

    Why Age 18 Matters

    The petition relies on Section 11 of the Indian Contract Act, which addresses the legal capacity to enter into contracts. Senior advocate H.S. Phoolka, representing JRCA, argued that existing law already covers minors’ contractual capacity, making it unnecessary to wait for the proposed data protection framework. Signing up for social media involves accepting a platform’s terms and conditions, raising questions about how platforms allowing younger users align with Indian law.

    Parental Consent Under Consideration

    One proposed option is requiring parental or legal guardian consent before users under 18 can enter into contracts with social media platforms. The petition also suggests identity verification or e-KYC for parents or guardians. These changes would require platforms to build systems compliant with Indian legal requirements, rather than relying solely on their existing minimum-age policies. Currently, platforms like Facebook and Snapchat allow account creation from age 13.

    What Happens Next

    The JRCA petition highlights risks including online grooming, sexual exploitation, trafficking, sextortion, cyberbullying, behavioral profiling, misuse of personal information, and exposure to age-inappropriate content. The Centre is now examining whether stronger safeguards can be incorporated into the statutory framework governing digital intermediaries. The Supreme Court is expected to hear the matter again after the government reviews the issue.

  • India’s Online Gaming Firms Make Last-Ditch Supreme Court Challenge Against 28% GST on Player Entry Fees

    India’s Online Gaming Firms Make Last-Ditch Supreme Court Challenge Against 28% GST on Player Entry Fees

    India’s online real-money gaming industry is back in the Supreme Court, with major companies filing review petitions to challenge the government’s decision to levy a 28% Goods and Services Tax (GST) on the full entry fee paid by players. This legal battle could determine the future of the country’s gaming sector.

    According to reports, Play Games24x7 and Junglee Games have already filed review petitions, and several other online gaming companies are expected to follow suit. The tax demands in question exceed Rs. 1.5 lakh crore, making this one of the most significant tax disputes in the industry’s history.

    Why Gaming Companies Are Fighting the Tax

    Gaming companies argue that the GST rules were not clear when the tax was initially applied, making it unfair to impose retrospective tax demands. They contend that GST should be charged only on the platform fee they earn from each contest, not on the total amount players pay to join games. The government, however, maintains that the full entry fee constitutes a taxable supply.

    Potential Impact on the Industry

    The Supreme Court’s decision will have far-reaching consequences. If the companies win, they could avoid paying massive tax dues, preserving the current business model. If the government prevails, many gaming platforms may have to restructure their operations or face financial strain.

    How India Compares to Other Countries

    India’s tax regime for online gaming is considered one of the harshest globally. In the UK, gaming companies pay tax only on the money they retain after payouts, not on total player deposits. Singapore takes a similar approach for licensed operators. In the US, taxation varies by state but is generally based on gaming income rather than entry fees. The Philippines taxes licensed operators on profits, while Brazil is building its online betting market with a comparable framework. India’s 28% GST on the entire contest entry amount stands out as particularly stringent.

    The outcome of this case is being closely watched by investors, operators, and policymakers alike, as it will set a precedent for how online real-money gaming is taxed in one of the world’s largest markets.