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Supreme Court Issues Notice on Online Gaming Companies' Plea Against 28% GST

Last Updated: 08-01-2024 04:18:24pm
Supreme Court Issues Notice on Online Gaming Companies' Plea Against 28% GST

The Supreme Court on Monday sought the response of the Central government and the Directorate General of Goods and Services Tax Intelligence on a plea filed by online gaming companies challenging the levy of 28 percent Goods and Service Tax (GST) on all forms of online real-money gaming.A bench of Chief Justice of India DY Chandrachud with Justices JB Pardiwala and Justice Manoj Misra issued notice after hearing the counsel for the gaming companies, Senior Advocate Harish Salve.The petitioners include Dream 11, Games 24x7, and Head Digital Works.The Goods and Services Tax (GST) Council in its 50th meet in July 2023 had recommended that online gaming along with casinos and horse racing be taxed at a uniform rate. The Council decided that there should be no distinction between “games of skill” and “games of chance."Last year, the Central government had proposed the introduction of online gaming regulations in the form of amendments to the Information Technology. These draft Rules were notified a few months later.Among the highlights, the draft Rules define a gaming platform as an “online gaming intermediary” which will have the games registered with a “self-regulatory body” comprising a board of directors or the governing body.The regulatory body was proposed to be registered by the ministry upon an application made by it. Additional Solicitor General N Venkataraman appeared for the Central government.The Calcutta High Court on Monday refused to grant urgent hearing to a Public Interest Litigation (PIL) petition highlighting the recent attack on the officers of the Enforcement Directorate (ED) in Sandeshkhali area of North 24 Parganas district. A division bench of Chief Justice TS Sivagnanam and Justice Supratim Bhattacharya said it would hear the matter on Thursday instead of taking it up today itself. "We have read your petition in the newspapers. We will hear your matter in the due course that is on Thursday," the Chief Justice said. 

This was after the petitioner's counsel mentioned the PIL seeking an urgent hearing. The counsel said, "After the incident there has been an unrest in the area thus, this court should hear the matter."A team of the ED sleuths was attacked and beaten up by locals in the Sandeshkhali area where they had gone to probe into an alleged 'ration distribution scam' linked to a local member of the Zilla Parishad. The locals alleged that the ED officers were trying to outrage the modesty of women. The matter will be heard on Thursday. 

TAGS: Calcutta High Court Urgent Hearing Public Interest Litigation (PIL) Enforcement Directorate (ED)


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