Daijiworld Media Network
New Delhi, Jan 10: The Supreme Court on Friday stayed showcause notices issued by GST authorities amounting to over Rs 1 lac cr to online gaming companies and casinos for alleged tax evasion.
A bench comprising Justices J B Pardiwala and M Mahadevan observed that the issues raised required detailed consideration and directed that all proceedings against the gaming firms be put on hold until further notice.
Additional solicitor general N Venkataraman, representing the GST department, noted that some of the showcause notices are set to lapse in February. The court has scheduled the matter for hearing on March 18.
The dispute dates back to October 2023, when GST authorities issued notices to several online gaming firms following amendments mandating overseas gaming companies to register in India. The amendments, effective October 1, 2023, also included a GST rate of 28% on the full value of bets placed on gaming platforms, as clarified by the GST Council in August 2023.
Gaming companies such as games 24x7, Head Digital Works, and the Federation of Indian Fantasy Sports had challenged these GST demands, filing petitions in multiple high courts. In response, the Supreme Court consolidated these cases in December last year for a comprehensive ruling on the matter.
The court also stayed a Karnataka High Court decision that had previously quashed a Rs 21,000 cr GST notice issued to an online gaming company.
The final verdict is expected to have a significant impact on the online gaming industry in India.