On September 18, 2023, a crucial legal proceeding unfolded as the Supreme Court’s bench, comprising Justice Aniruddha Bose and justice Bela Trivedi, convened to deliberate upon an appeal filed by the Tamil Nadu government. This appeal was lodged in response to the decision by the Madras High Court to nullify a law that imposed a ban on online gaming within the state.
During the previous hearing on September 15, 2023, a pivotal argument emerged in the legal battle between the gaming companies, possibly representing online gaming platforms, and the All India Gaming Federation (AIGF), on one side, and the Tamil Nadu government on the other. The crux of this argument revolved around the contention that the appeal lodged by the Tamil Nadu government had effectively become “infructuous” since the state has enacted a new legislation.
Mr. Amit Anand Tiwari, serving as the Additional Advocate General for the state of Tamil Nadu, argued that the case remained relevant because the unresolved question of whether online rummy played for stakes is permissible still required resolution.
On the contrary, Dr. Abhishek Manu Singhvi, Mr. Mukul Rohatgi, and Mr. C. Aryama Sundaram, Senior Counsels representing gaming companies and the gaming federation AIGF, strongly maintained their stance that the appeal from Tamil Nadu had indeed lost its relevance.
The Central Government has taken a momentous step in the taxation of online gaming services by establishing a GST rate of 28% for these services. This represents a noteworthy change in the tax framework and is slated to be put into effect as of October 2023.
Read More: Lok Sabha Passes CGST and IGST Amendment Bill Proposing 28% GST on Online Gaming
The upcoming hearing is set for September 22, 2023.
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