GST News : Supreme Court gives big relief to online gaming companies..
- Sonebhadra Times
- Jan 10
- 2 min read
The department cannot take any immediate action against online gaming companies until the Supreme Court hearing concludes and a final decision is made.
GST News : Gaming companies received significant relief from the Supreme Court today. The court has prohibited online gaming companies from acting on the notice exceeding Rs 1.12 lakh crore issued by the GST Department. Following this relief from the Supreme Court, the shares of gaming companies listed on the stock exchange soared.
A two-judge panel consisting of Justice J.B. Pardiwala and Justice R. Mahadevan, during the proceedings, has scheduled March 18, 2025, as the date for the subsequent hearing on the case. Following the Supreme Court's directive to suspend the GST notice, Delta Corp's stock experienced a significant increase. The stock surged over 15 percent to Rs 131.20, after closing at Rs 113 in the previous trading session. Shares of Nazara Technologies also saw a notable rise, reaching Rs 1077, with an increase of 8.78 percent. This Supreme Court order provided relief not only to listed companies but also to other gaming firms like Gameskraft and Games 24x7. Several online gaming companies, including Games 24x7, Head Digital Works, and the Federation of Indian Fantasy Sports, had petitioned the apex court against the GST imposition.
The GST department had sent notices to these gaming companies about tax demands, but the department cannot take any action until the Supreme Court hearing concludes and a final decision is made. Additional Solicitor General N. Venkataraman, representing the GST department in court, mentioned that the validity of some show cause notices will expire in February.
In October 2023, online gaming companies received show cause notices for GST evasion amounting to Rs 1.12 lakh crore. Additionally, the government amended the GST law, requiring foreign online gaming companies to register in India starting October 1, 2023. In August 2023, the GST Council clarified that a 28 percent GST would be applied to the total value of bets placed on online gaming platforms. Gaming companies had filed petitions against this in various High Courts. The Supreme Court had accepted the central government's petition last year and took over the petitions filed in nine High Courts challenging the 28 percent GST on e-gaming companies.
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