The Supreme Court is set to conclude hearings on the online gaming GST dispute by Thursday. A bench led by Justice J.B. Pardiwala will hear closing submissions from petitioners on Tuesday and Wednesday before deciding the fate of over 27 online gaming companies under scrutiny from tax authorities.
The case will determine whether these companies must pay 28% goods and services tax on the full value of bets, either prospectively or retrospectively. Until 2022, gaming platforms paid 18% GST only on platform fees or commissions. In August 2023, the Centre amended the Central GST Act to classify real money online gaming as gambling, placing it under the 28% tax slab.
Following the amendment, online gaming firms received show-cause notices demanding taxes exceeding Rs 1.3 lakh crore on amounts collected from players in previous years. The companies are contesting the retrospective application of the higher tax rate.
The court has clubbed around 27 petitions filed by companies including Gameskraft, Dream11, MPL, PokerBaazi, Junglee Rummy, and A23, as well as industry associations such as the All India Gaming Federation, E-Gaming Federation, and Federation of Indian Fantasy Sports.
The court’s final ruling will decide the validity of retrospective tax demands and define how online gaming will be taxed in India going forward.
Source from: https://www.ndtvprofit.com/business/supreme-court-online-gaming-28-gst-tax-verdict-dream11-gameskraft
