Online Gaming: GST case on online gaming, big relief to the Central Government from the Supreme Court. Supreme Court relief to Central

Relief to the government in online gaming caseImage Credit Source: Freepik

The Central Government has got a big relief from the Supreme Court in the online gaming case. The Supreme Court has allowed the petition of the Central Government in which all the pending cases before the High Court challenging the GST notice issued to online real money gaming companies have been demanded to be transferred to the Supreme Court.

In this case, the CJI said that we allow 27 petitions pending in nine High Courts to be transferred and listed along with the Gamecraft case pending in the Supreme Court. The Central Government has got relief from the Supreme Court in the online gaming case and in this matter the Central Government has also been directed to file its reply by 27 April 2024.

Online Gaming GST: What was the matter?

GST notice of Rs 1.5 lakh crore was given to online gaming companies, in this matter the Supreme Court had sought reply from the Central Government. Recall that in December last year, the court had given two weeks time to the government to respond in this matter.

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The government had certainly sought a reply but the court had not in any way stayed the tax notice issued by the government. In fact, in October last year, GST on the services of online gaming companies was imposed at 28 percent instead of 18 percent.

online gaming What did the government have to say in the matter?

Online gaming companies had said that the new GST rate should be considered till October 1, 2023. At the same time, in this matter the government said that 28 percent GST on online gaming is not new, it already exists. This is why companies will have to pay old dues also.

Recall that in the GST Council meeting last year, it was announced to impose 28 percent GST on casinos, online gaming and horse racing. Before the announcement, 18 percent GST was charged on online gaming, casino and horse racing.

online gaming But how does GST work?

Understand in simple language how it is a burden on the pocket, if you deposit Rs 100 online to play, then you will be charged 28% GST. If you win Rs 200 by investing Rs 100 and you do not withdraw this money and do gaming again, then 28 percent GST will not be charged from you again.

online gaming market is quite large

Approximately 40 crore people of the country enjoy online gaming. This industry is growing rapidly all over the world, the gaming industry is expected to reach Rs 41 thousand crore by next year i.e. 2025.

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Brijesh Pratap
Brijesh Pratap

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