The Supreme Court based in New Delhi is set to listen to consolidated pleas challenging the 28% Goods and Services Tax (GST) on companies involved in online gaming. The court has decided to combine and hear simultaneously 27 pleas that have been discussed in 11 high courts across the country.
Among these pleas is a petition filed by Gameskraft and lawsuits by EGF and Play Games24x7. The central government has also been summoned by the Supreme Court to submit counter-affidavits in all the pleas within three weeks. The collective hearing is scheduled for the end of April.
The main hearing in this case aims to address the prolonged tax issue in the online gaming sector. It will also serve as an opportunity to definitively determine whether these are skill-based games or games of chance, and whether they fall under the purview of betting and gambling.
Several online gaming companies such as Dream 11, Games 24×7, and Head Digital Works have lodged complaints with the Supreme Court challenging the imposition of GST. Previously, the Supreme Court had denied these companies a temporary suspension of the tax notifications.
This issue also pertains to the Gameskraft case where the Supreme Court extended the Karnataka High Court’s judgment invalidating a tax notification amounting to 21,000 crore rupees.
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Supreme Court to Examine Legal Challenge Against 28% GST on Online Gaming Firms
