Online gaming companies Head Digital Works and Games 24/7 are challenging the government's decision to impose a 28 per cent Goods and Services Tax (GST) on the total value of bets, instead of the gross gaming revenue. The Supreme Court has issued notices in response to their petitions.
On January 8, the court instructed the Central government and the GST department to submit their responses to the plea within two weeks. The court is anticipated to conduct the hearing for the case in a few months, as per a report by moneycontrol.
Representing the online gaming companies was senior advocate Harish Salve, while Additional Solicitor General Venkatraman appeared on behalf of the GST department and the Union of India. The GST department has committed to submitting a transfer petition requesting the consolidation of all cases related to the same legal issue from different high courts to the Supreme Court.
On December 15, the Supreme Court declined to provide interim relief regarding Goods and Services Tax (GST) demand notices for online gaming companies Head Digital Works and Games 24/7. However, the court hinted at its willingness to examine a case challenging the constitutional validity of the government's imposition of a 28 per cent GST on online gaming companies. This imposition applies to the entire value of bets placed, rather than to the gross gaming revenue, effective from October 1.
The gaming industry has been embroiled in an ongoing dispute since the previous year when the government levied GST on online gaming.