GST Council about to hear Plea by Gaming Firms on Past Tax Demands
The next GST Council meeting is about to hear the plea by online gaming firms on the past tax demands. The Central Government issued notices amounting to Rupees one trillion to the online gaming firms last year. The Supreme Court highlighted that it would hear a batch of petitions challenging demand notices asking online gaming companies to pay 28 percent Goods and Services Tax...
The next GST Council meeting is about to hear the plea by online gaming firms on the past tax demands.
The Central Government issued notices amounting to Rupees one trillion to the online gaming firms last year.
The Supreme Court highlighted that it would hear a batch of petitions challenging demand notices asking online gaming companies to pay 28 percent Goods and Services Tax (GST) on the full face value of bets. A bench led by Chief Justice of India DY Chandrachud said this while hearing a plea filed by Baazi Networks Private Limited, which owns Baazi Games, challenging notices issued to them.
A batch of 30 petitions by online real money gaming companies challenging retrospective GST notices demanding payment of thousands of crores calculated at 28 percent on the face value of bets is currently pending before the Supreme Court.
During the course of the hearing, the gaming companies argued that while the government has told the court that it would not act on notices, orders are likely to be passed in some case. Additional Solicitor General (ASG) Venkatraman, who appeared for the GST department.
In December 2023, the apex court refused to stay these notices, however the Court agreed to hear the plea.
It is after this scenario that the upcoming GST Council is about to hear pleas by the online gaming firms.
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