Hriday Shah
On 10th January 2025, the Supreme Court of India stayed several show cause notices issued by GST Authorities to online gaming companies and casinos worth over 1 lakh crores. GST Authorities alleged that the online gaming companies and casinos of tax evasion, therefore issued show cause notices on October 2023.
Due to certain amendments made in GST laws it was made mandatory for overseas online gaming companies to be registered in India from 1st October 2023. GST Council also clarified that 28% GST would be levied on the full value of bets placed on these online gaming platforms. Thereafter, the gaming companies moved various High Courts against the GST demands.
A petition was made and the matter was then transferred to the Supreme Court from 9 High Courts. The Apex Court had stayed the Karnataka High Court verdict quashing GST intimation notice of Rs. 21,000 crores issued to one of the online gaming companies.
Case Name: Directorate General of Goods and Services Tax Intelligence (HQS) and Ors v. Gameskraft Technologies Pvt Ltd.
Diary Number: SLP(C) No. 19366-19369/2023
Bench: Justices J B Pardiwala and R Mahadevan