- Indian Supreme Court set to hear a case on January 10th about granting a stay on show cause notices to online gaming companies regarding retrospective GST tax demands
- Several Indian gaming firms are seeking interim relief from retroactive GST demands to avoid coercive action from tax authorities until a final decision is reached
- The court will consider setting a date for a final hearing on this matter
- The total tax demand on these e-gaming firms is estimated at Rs 1.08 lakh crore
- Last year, the Supreme Court agreed to hear appeals against the retrospective application of a revised 28 percent GST rate on online gaming companies
- The firms are contesting the tax department’s decision to impose this tax on the full value of bets placed before October 1st, 2023
- Numerous petitions are pending in various high courts, prompting the Supreme Court to consolidate all cases for a definitive ruling
- In August, changes to the GST Act included online gaming in the list of taxable actionable claims, subject to a 28 percent tax effective from October 1st, 2023
- The tax is applied at the point of deposit, regardless of whether the games are based on skill or chance
- The government claims that the tax liability was pre-existing and the amendment only clarified it
- Following the amendment, gaming companies received numerous GST notices, with demands now far exceeding their earnings
- Shares of Indian gaming operator Delta Corp surged more than 7 percent following the appeal update
Source: agbrief.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
