GST authorities had last October issued showcause notices to e-gaming companies for tax evasion
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New Delhi: The Supreme Court on Friday stayed showcause notices issued by GST authorities worth over Rs 1 lakh crore to online gaming companies and casinos over alleged tax evasion.
A bench of Justices J B Pardiwala and R Mahadevan said the matters required hearing and all proceedings against the gaming companies should remain stayed in the meantime.
Additional solicitor general N Venkataraman, representing the GST department, said some showcause notices would come to an end in February. The matter was posted on March 18.
GST authorities in October 2023 issued showcause notices to online gaming companies for tax evasion.
The government amended the GST law, making it mandatory for overseas online gaming companies to register in India from October 1, 2023 onward.
In August, 2023, the GST council clarified 28 per cent GST would be levied on the full value of bets placed on online gaming platforms. Gaming companies moved various high courts against such GST demands, contesting the claims of the revenue authorities.
The top court last year allowed a petition of the Centre and transferred to itself pleas, challenging the imposition of 28 per cent GST on e-gaming firms, from nine high courts for an authoritative pronouncement.
Many online gaming firms like Games 24×7, Head Digital Works, Federation of Indian Fantasy Sports had moved the top court challenging the GST imposition.
The top court had stayed the Karnataka High Court verdict quashing the GST intimation notice to the tune of Rs 21,000 crore issued to an online gaming firm.
