A report from an official suggests that the government is about to offer some relief to the money gaming industry from the retrospective tax claims. This matter has already been presented in the Supreme Court, and the hearing is set to be held in July this year.
Even if the Supreme Court favours the Government, the road to recovery is rumoured to be challenging. Demand notices are a couple of times higher than the revenues of the noticeable companies. However, Financial Express reports that the government is steadfast in its support for the money gaming industry, regardless of the Supreme Court’s hearing outcome.
In April this year, the Supreme Court transferred 27 writ petitions to itself, challenging a levy of 28% on all forms of real-money gaming with retrospective effect. However, those petitions are still pending across nine states.
The central government has sought for these petitions to be transferred from the High Court to the Supreme Court. After that, the Supreme Court also decided to seek the Directorate General of Goods and Services Taxes Intelligence in this issue. Dream11, Games 24×7, and Head Digital Works are among the main petitioners.
Last year in September, as the Supreme Court issued a stay on the Karnataka High Court order, GST field officers issued notices of over Rs.1.12 lakh Crore for online gaming companies. Those notices were issued in response to alleged tax invasions and prompted legal challenges.
Earlier, the Karnataka High Court quashed one of the notices worth Rs21,000 crore. While stating that online rummy played on a gaming platform called Gameskraft was not taxable as a betting or a gambling company.
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