SC Stays GST Notices On Online Gaming Firms & Casinos

The Supreme Court on Friday paused showcause notices issued by GST authorities to online gaming companies and casinos over alleged tax evasion of over ₹1 lakh crore.

A bench of Justices J B Pardiwala and R Mahadevan stated the cases needed further hearing and halted all proceedings against these companies for now. 

Additional Solicitor General N Venkataraman, representing the GST department, mentioned that some of these notices would conclude by February. 

The next hearing is scheduled for March 18.

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In October 2023, GST authorities issued notices to online gaming firms for tax evasion. The government had amended the GST law, requiring overseas gaming companies to register in India starting October 1, 2023. 

Earlier, in August 2023, the GST Council clarified a 28% tax would apply to the full value of bets placed on gaming platforms. Several gaming companies challenged these tax demands in high courts, disputing the claims.

Last year, the Supreme Court accepted a request from the Centre and moved cases from nine high courts to itself for a decisive ruling on the 28% GST imposed on e-gaming firms. 

Several companies including Games 24x7, Head Digital Works, and the Federation of Indian Fantasy Sports, had challenged the GST. The court also paused a Karnataka High Court decision that had canceled a GST notice of ₹21,000 crore sent to an online gaming company.

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