Supreme Court seeks Central Government response on online gaming companies’ plea against 28 percent GST

Supreme Court seeks Central Government response on online gaming companies’ plea against 28 percent GST

The petitioners included Dream 11, Games 24x7, and Head Digital Works

The Supreme Court has 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, Justice JB Pardiwala, and Justice Manoj Misra issued notice after hearing the gaming companies’ counsel, Senior Advocate Harish Salve.

The petitioners included Dream 11, Games 24x7, and Head Digital Works.

In its 50th meet in July 2023, the GST Council had recommended that online gaming along with casinos and horse racing should be taxed at a uniform rate. The Council decided that there should be no distinction between ‘games of skill’ and ‘games of chance’.

Earlier, the Central Government had proposed the introduction of online gaming regulations in the form of amendments to Information Technology. Later, the draft rules were notified.

The rules defined a gaming platform as an ‘online gaming intermediary’ which would have the games registered with a ‘self-regulatory body’ comprising a board of directors or the governing body.

Upon an application, the regulatory body was proposed to be registered by the ministry.

Additional Solicitor General N Venkataraman appeared for the Central Government.