SC to hear final arguments on 28% GST on online gaming industry in April

The Supreme Court will hear final arguments on the applicability of GST to online gaming companies on April 2.

India.- The Supreme Court has confirmed a final hearing for cases challenging the Goods and Services Tax (GST) show cause notices issued to online money gaming companies and casinos. 

The hearing is slated for April 2, following the conclusion of the 9-judge bench cases in the upcoming months. Notable petitioners include Games 24×7, Head Digital Works, and the Esports Gamers Federation (EGF).

This legal proceeding is poised to address the prolonged tax ambiguity surrounding money gaming, providing clarity on whether these activities are deemed games of skill or chance. Furthermore, it will determine if they fall within the scope of betting and gambling for taxation purposes.

During the recent hearing, senior advocate Harish Salve represented the online money gaming companies, while additional solicitor general N. Venkatraman appeared for the GST department and the Union of India. The court acknowledged the service of notices to over 99 companies.

According to G2G News, the Supreme Court has directed the central government, the respondent, to file a counter affidavit within two weeks. Despite the petitioners’ request for a stay on the tax notices, the court did not grant it. 

The apex court has selected representatives for both the plaintiffs and defendants and instructed them to collaborate on gathering and organizing all relevant materials, including arguments, legal documents, and prior cases. They must then submit their written statements electronically at least a week before the final hearing date.