Mumbai, May 29 -- The Supreme Court on Wednesday ruled that online gaming platforms cannot be treated merely as intermediaries and observed that such activities amount to actionable claims under GST law.

The ruling comes as a setback for online gaming companies that had challenged the retrospective tax demand, arguing that treating online gaming as "gambling" under GST law contradicted judicial precedents established by the Supreme Court and various High Courts over the years.

The Hon'ble Supreme Court has pronounced its order in the matters relating to the show cause notices issued to the company and its subsidiaries for short payment of goods and services tax.

In an exchange filing, the company said that a copy of the Supreme Court's...