New Delhi. Online gaming companies and casinos have got big relief from the Supreme Court. The apex court has stayed the show cause notice issued in the tax (GST) evasion case of more than Rs 1 lakh crore. On Friday, a bench of Justice JB Pardiwala and Justice R Mahadevan heard the case.
The apex court has also stayed the Karnataka High Court’s decision to quash the Rs 21,000 crore GST notification notice issued to an online gaming firm. The Central Government had amended the GST law on 1 October 2023. Under this, registration in India was made mandatory for foreign online gaming companies. In October 2023 itself, the GST department issued a show cause notice to online gaming companies.
These companies (online gaming companies) were accused of tax evasion. In August 2023, the GST Council made it clear that 28 percent GST will be charged on the entire amount of money wagered on online gaming platforms (online gaming companies). Gaming companies filed petitions in various High Courts against this decision of the GST Council.
After this the Center filed a petition in the Supreme Court. Later, the Supreme Court transferred to itself all the petitions challenging the 28 percent GST from nine High Courts. Hearing on these petitions was held on Friday. Additional Solicitor General N Venkataraman presented the GST department’s side in the court. He said some show cause notices will expire in February.
