Supreme Court halts GST Council’s action against 49 online gaming companies
THE JHARKHAND STORY DESK Advertisement Advertisement New Delhi, Jan 10: The Supreme Court has provided relief to 49 online gaming companies…
THE JHARKHAND STORY DESK
New Delhi, Jan 10: The Supreme Court has provided relief to 49 online gaming companies by halting the GST Council’s actions against them.
Reports indicate that these companies had received notices demanding over one lakh crore rupees based on the full face value of the stakes placed through their platforms.
A bench comprising Justices JB Pardiwala and R. Mahadevan issued the stay on the GST Council’s measures, with the next hearing scheduled for March 18.
Also Read- Jharkhand CM assures proper treatment for injured Baghmara DSP; Orders investigation
Gaming industry advocates for tax calculation on GGR
According to reports, on October 1, 2023, the GST Council imposed a 28% tax on the full face value of online gaming stakes. The Council also promised to review the levy after six months.
However, the gaming industry advocates for tax calculation based on the Gross Gaming Revenue (GGR) rather than the face value of the stakes.
GGR reflects the amount of winnings subtracted from the stake placed. In contrast, the full face value refers to the total stake amount or competition entry fee.
Gaming companies argue that taxing based on the full face value would be unfair, as users would be required to pay 28% GST on each deposit. This could make online gaming platforms more expensive and limit access for the general public.
