šØ Important Legal Update: Supreme Court to Hear Pleas Challenging Retrospective Tax on Online Gaming
ā
Supreme Court Proceedings Overview
- The Supreme Court will hear challenges from online gaming companies against the 28% GST on real-money gaming starting May 5.
š¢ Background Information
- The bench led by Justice JB Pardiwala will discuss the matter.
- The court is prepared to hold hearings over four to five days.
ā”ļø Key Points of Discussion
- Online gaming firms (including Head Digital Works, Games24x7, and Dream11) contest the imposition of tax on the full value of online bets rather than on gross gaming revenue.
š¹ Previous Court Decisions:
- The Supreme Court had directed the Centre and GST Department to respond to the challenges.
- The GST Council introduced a flat 28% tax for online gaming in 2023, effective from October 1, 2023.
ā
Implications of the Case
- This will establish clarity on the retrospective applicability of the tax and potentially impact the financial responsibilities of online gaming companies moving forward.
Abhishek Raja "Ram"
@abhishekrajaram
MEC, STBA Delhi || Speaker and Author on GST. Life dedicated towards Tax and Economic Reforms & Simplification