A few months after the new 28% tax on the iGaming Industry in India was officially imposed by the government, the Goods and Services Tax (GST) department to be exact, the gambling industry in the country continues to express worries and dissatisfaction with this tax.
In the latest development, companies Games 24/7 and Head Digital Works have decided to challenge this tax, particularly on the government’s decision to impose the tax on the total value of bats and not gross revenue. Their cases are now bound to be heard before the Supreme Court.
When Will the Hearings Be Held?
At this time, it’s not yet known when the Supreme Court will hold the hearings, but it will be sometime in the next few months. The court has instructed the GST department and the Central government to deliver their responses to the plea submitted by the iGaming industry, so the next step is for the court to read the responses and set the hearing date.
During the legal proceedings, the representation of the online gaming companies’ interests was entrusted to the highly respected senior advocate, Harish Salve. On the opposing side, the Additional Solicitor General Venkatraman appeared, representing the GST department and the Union of India.
How Will the Outcome of This Case Affect the Gaming Industry?
The gaming industry, a major contributor to the digital economy in the country, is currently involved in a prolonged dispute that originated last year when the government introduced the new GST tax on online gaming. The GST Council recommended taxing the full face value of bets in online gaming, casinos, and horse racing.
This decision has led to a series of legal challenges, with industry leaders seeking clarification on the taxation framework and its repercussions for the rapidly growing online gaming sector.
As the legal proceedings unfold, the outcomes of these hearings carry substantial implications not only for the companies involved but also for the broader online gaming industry. They have the potential to establish a precedent for future tax regulations in this dynamic and swiftly evolving sector. Stakeholders are anxiously awaiting the Supreme Court’s examination of these cases, anticipating a resolution that could significantly influence the future landscape of online gaming taxation in India.