Supreme Court seeks Centre's reply to plea against levy of 28 per cent GST on online gaming

On Monday, the Supreme Court of India decided to look into a plea from the E-gaming Federation that argues against the current 28% GST that is being levied on all forms of online real-money gaming. Headed by Chief Justice D Y Chandrachud and accompanied by Justices J B Pardiwala and Manoj Misra, the bench brought up the matter after hearing from senior advocate Harish Salve, who spoke on behalf of the federation, as well as Additional Solicitor General N Venkataramani. After listening to their respective submissions, the bench decided to issue notices on the plea, thereby commencing the legal process of looking into the matter. This move by the Supreme Court comes in response to persistent appeals from the E-gaming Federation to address the issue of the high GST rate that is hindering the growth of the online gaming industry in India.

According to the recent reports, the Directorate General of Goods and Services Tax Intelligence was recently requested by the court to provide a response to a particular plea within a time frame of two weeks. This information was provided as the top court took into account the remarks and arguments presented by both counsels. It was noted that multiple high courts have received similar petitions, and subsequently passed orders on the same. Therefore, in an effort to ensure that justice is served, the court ruling highlights the importance of reviewing all relevant material, and making informed decisions based on the evidence presented in each specific case. All parties involved are expected to adhere to the timelines outlined by the court, and work together to facilitate a thorough and comprehensive assessment of the matter.

Several companies have joined the petitioners in seeking clarification on the tax policy for online gaming. Among these companies are Dream 11, Games 24×7, and Head Digital Works. The issue was discussed in a GST council meeting in July of last year, where the council recommended that online gaming, along with casinos and horse racing, be taxed at the same rate. The council also decided that there should be no distinction between games of skill and games of chance. The concerned companies have filed a plea seeking clarity on this matter, and the bench has announced that it will hear the plea shortly. To facilitate this process, the nodal counsel has been appointed to file a compilation for the case.