New Delhi:The Supreme Court on Friday stayed show cause notices worth over ₹1 lakh crore issued by GST authorities to online gaming companies and casinos for alleged tax evasion. A bench of Justices J.B. Pardiwala and R. Mahadevan stated that all proceedings against these firms would remain stayed until further hearing, scheduled for March 18.
The notices, issued in October 2023, followed the government's amendment to GST laws requiring overseas online gaming firms to register in India from October 1, 2023, and imposing 28 per cent GST on the full value of bets placed on such platforms. Gaming companies have contested these demands in multiple high courts.
The Supreme Court previously consolidated cases from nine high courts for a definitive ruling and stayed a Karnataka High Court verdict that quashed a ₹21,000 crore GST notice against an online gaming firm. Leading companies like Games 24x7 and Head Digital Works have challenged the GST levy in the top court.
