This was as a result of petitions from civil rights groups and students. However, the Supreme Court retained a part of the law that allowed the government to block online materials as well as take action against websites that do not obey censorship orders.
Indians have hailed the rulling as a victory for free speech.
Several Indians took to their twitter and facebook pages to show their happiness at the scrapping of section 66A of Internet law.
Section 66A, which was added to India's Information Technology Act in 2008 decreed that "grossly offensive online comments or messages could be punished with up to three years in jail.
Many people have been arrested based on their facebook posts.
In 2012, two young women were arrested in Mumbai for their Facebook posts which critcised city-wide shutdown to mourn the death of a political leader. Following public outcry, they were released on bail.
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