A Common order to decide all GST disputes for Online Gamming being sought

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In a very important move it is learnt that the Government is likely to request the Supreme Court to club together all the GST online gaming cases that are currently under litigation on the grounds of *"single principle"*.


A number of online gaming cases are pending in the Supreme Court and various High Courts on the taxability issue. The final decision on it will be taken by the Supreme Court and one cannot have multiple interpretations of the same law. So the request is to tag all the cases together appears to be logical.

If the Supreme Court agrees, it will pass an order saying that since the cases are pending before it, all the matters can be tagged instead of multiple orders being passed.

Some of the earlier major decisions of the Supreme Court are in the name of a company but the list of tagged cases go up in 100s requiring multiple orders.

This transfer can only be initiated at the discretion of the Supreme Court.

So, clubbing of all the GST online gaming company cases will save a lot of  resources and time.

The request to transfer comes when the Supreme is about to take up the case of Gameskraft, a Bengaluru-based gaming company that was first issued a notice in 2022, to pay Rs 21,000 crore in GST arrears from July 2017 to June 30, 2022. The company disputed the order. The case is expected to be heard by the SC very shortly.

Looking back, the GST Council approved 28% GST on all online games from October 1, 2023. 

It also interpreted that between July 2017 and Oct 1, 2023 all online games involving bets, irrespective of skill or chance, needed to pay a GST rate of 28% on the full value of the bets placed, as it fell under the category of gambling. 

Several online gaming firms have been engaged in a tussle ending up in huge litigation over this which matters are subjudice at various courts.

Currently, the Bombay HC, Goa bench of Bombay HC, Karnataka HC and the Sikkim HC are hearing cases pertaining to GST notices to online gaming companies.

Most of the Popular online gaming companies who had received notices for crores of rupees like Dream 11’s, Games 24x7, Delta Corp and Head Digital Works, have moved petitions in various courts.

Well........

If the honourable SC in its discretion takes up the grounds of single principle and passes a common order, it would be a proactive move in the interest of Justice.

R.SRIVATSAN,

NACIN, Chennai

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