Centre to request SC for clubbing GST online gaming cases
What's the story
The Indian government may ask the Supreme Court to club all Goods and Services Tax (GST) online gaming cases, currently in litigation on the grounds of a single principle, reported Moneycontrol.
This move is intended to prevent multiple interpretations of the same law and conserve resources and time for the Central Board of Indirect Taxes and Customs (CBIC).
However, the Supreme Court has the final say on whether to initiate the transfer.
Details
Background of GST online gaming cases
Online gaming companies like Dream Sports and Gameskraft have disputed tax demands from GST authorities.
The GST Council approved a 28% GST on all online games starting October 1, 2023, and determined that from 2017 to October 1, 2023, all online games involving bets were required to pay a GST rate of 28% on the total value of bets placed.
As a result, GST notices worth Rs. 1 lakh crore have been issued to online gaming firms this year alone.
What Next?
Dispute over taxation period
Online gaming businesses contend that the 28% tax should only be enforced from October 1, 2023. However, the government believes it should also apply to the period before October 1.
The Centre claims that the October 1 revision merely clarified an existing law.
Presently, the Bombay High Court, Goa bench of Bombay High Court, and Sikkim High Court are hearing cases related to GST notices.
Insights
Recent developments in court cases
In October, Delta Corp announced that the Bombay High Court in Goa reviewed writ petitions filed by the company and its subsidiaries concerning tax authorities' show-cause notices.
The court issued an order preventing authorities from making final decisions without prior court permission.
Similarly, the Sikkim High Court has halted a GST demand notice of Rs. 628 crore against Delta Corp. The Supreme Court is anticipated to hear Gameskraft's case in the upcoming weeks.