Highlights

  • Online gaming firms contest ₹1.5L crore retrospective GST
  • Dispute arises over 28% GST on online betting games

Latest news

Qualcomm Showcases Snapdragon 8 Elite Gen 6 Chips At IMC 2026, Teases New Flagships

Qualcomm Showcases Snapdragon 8 Elite Gen 6 Chips At IMC 2026, Teases New Flagships

Shokz Diwali Sale Brings Discounts On Open-Ear Headphones Across Amazon And Flipkart

Shokz Diwali Sale Brings Discounts On Open-Ear Headphones Across Amazon And Flipkart

iQOO 16 Confirmed For India With Snapdragon 8 Elite Extreme Gen 6 And OriginOS 7

iQOO 16 Confirmed For India With Snapdragon 8 Elite Extreme Gen 6 And OriginOS 7

ASUS Announces Festive Discounts Across Laptops, Gaming PCs And Tablets

ASUS Announces Festive Discounts Across Laptops, Gaming PCs And Tablets

Priyanka Gandhi lies on ground, Rahul detained as Delhi Police stop INDIA bloc MPs' Jantar Mantar march

Priyanka Gandhi lies on ground, Rahul detained as Delhi Police stop INDIA bloc MPs' Jantar Mantar march

Emotion, tears as Messi retires from Argentina national team

Emotion, tears as Messi retires from Argentina national team

Rajpal Yadav tells CJI Surya Kant his legal troubles inspired film title ‘Solah Sawan Jhel Ke’

Rajpal Yadav tells CJI Surya Kant his legal troubles inspired film title ‘Solah Sawan Jhel Ke’

Arun Govil returns to ‘Ramayana’ as King Dashrath in new poster

Arun Govil returns to ‘Ramayana’ as King Dashrath in new poster

SC issues notice to the government regarding ₹1.5 lakh crore GST demand from online gaming firms

The legal proceedings were commenced by the E-Gaming Federation, Play Games24x7, Head Digital Works, and other gaming startups, who are challenging the retrospective GST claims

SC issues notice to the government regarding ₹1.5 lakh crore GST demand from online gaming firms

The Supreme Court has taken cognizance of a petition filed by online gaming companies challenging the hefty tax demands of approximately ₹1.5 lakh crore imposed by the government, specifically on a 28% Goods and Services Tax rate. However, the court refrained from issuing a stay order on the tax notices already issued.

Chief Justice D.Y. Chandrachud led a three-judge bench that has summoned responses from the Union government and the tax department within two weeks.

The legal action was initiated by the E-Gaming Federation, Play Games24x7, Head Digital Works, and other gaming startups contesting the retrospective GST claims.

The issue arose following the Directorate General of GST Intelligence’s move to serve notices to online gaming companies for the previous five fiscal years, amounting to nearly ₹1.5 trillion.

The contention revolves around the GST Council's August amendment specifying a 28% tax on online games involving bets, effective from October. Gaming firms argue that the tax should only apply post the amendment, while the government asserts that the revision merely clarified existing law, justifying its demand for retrospective tax dues.

Finance Minister Nirmala Sitharaman clarified in the Lok Sabha that the 28% tax on entry-level bets was prospective, with clear guidelines on its application and the exclusion of winnings.

Simultaneously, the GST Department has informed the apex court about its intent to consolidate all cases from various high courts related to this issue into the Supreme Court.

Earlier in September, the Supreme Court had stayed a Karnataka High Court ruling that quashed a GST notice on Bengaluru-based Gameskraft Technology, involving alleged tax evasion of ₹21,000 crore.

Also Watch: Online gaming companies gear up for legal battles over GST ambiguity

Frequently Asked Questions

Finance Minister Nirmala Sitharaman clarified that the 28% tax on entry-level bets was prospective, with clear guidelines on its application and the exclusion of winnings.

ADVERTISEMENT

Up Next

SC issues notice to the government regarding ₹1.5 lakh crore GST demand from online gaming firms

SC issues notice to the government regarding ₹1.5 lakh crore GST demand from online gaming firms

Sensex falls 429 points, Nifty slips 173 points after RBI rate hike

Sensex falls 429 points, Nifty slips 173 points after RBI rate hike

RBI raises repo rate by 25 bps to 5.50%, shifts policy towards tightening

RBI raises repo rate by 25 bps to 5.50%, shifts policy towards tightening

GST rates likely unchanged as 57th Council meeting focuses on reforms

GST rates likely unchanged as 57th Council meeting focuses on reforms

Sensex gains 685 points, Nifty rises 220 points to cross 22,700

Sensex gains 685 points, Nifty rises 220 points to cross 22,700

Sensex gains 473 points, Nifty rises 134 points as markets stage recovery

Sensex gains 473 points, Nifty rises 134 points as markets stage recovery

ADVERTISEMENT

editorji-whatsApp

More videos

India To Grow 7% In FY27, Next Growth Phase Hinges On Infra, Deeper Capital Markets: S&P Global

India To Grow 7% In FY27, Next Growth Phase Hinges On Infra, Deeper Capital Markets: S&P Global

Sensex Falls 49 Points, Nifty Slips 96 As Selling Pressure Returns

Sensex Falls 49 Points, Nifty Slips 96 As Selling Pressure Returns

Sensex falls 243 points, Nifty slips 64 points as foreign outflows and crude prices weigh

Sensex falls 243 points, Nifty slips 64 points as foreign outflows and crude prices weigh

India launches anti-dumping probes into 7 Chinese products, including key pharma ingredients

India launches anti-dumping probes into 7 Chinese products, including key pharma ingredients

Sensex crashes 1,124 points, Nifty falls 1.56% as crude surges above $107

Sensex crashes 1,124 points, Nifty falls 1.56% as crude surges above $107

Sensex Rises 315 Points, Nifty Gains 77 as Markets Recover After Sharp Sell-Off

Sensex Rises 315 Points, Nifty Gains 77 as Markets Recover After Sharp Sell-Off

Sensex Crashes 1,248 Points, Nifty Falls 1.64% Amid Global Cues

Sensex Crashes 1,248 Points, Nifty Falls 1.64% Amid Global Cues

Sensex, Nifty End Higher As Domestic Growth Signals, Softer Crude Support Sentiment

Sensex, Nifty End Higher As Domestic Growth Signals, Softer Crude Support Sentiment

UPI Payments In Uzbekistan: Indian Travellers To Get QR-Based Payment Option

UPI Payments In Uzbekistan: Indian Travellers To Get QR-Based Payment Option

India’s Q1 GDP Growth Hits 7.8%, Beats RBI Estimate

India’s Q1 GDP Growth Hits 7.8%, Beats RBI Estimate

Editorji Technologies Pvt. Ltd. © 2022 All Rights Reserved.