NEW DELHI: The Supreme Court on Friday in its order transferred to itself all the pending petitions in nine High Courts challenging the imposition of 28% goods and services tax (GST) on online gaming companies.
The three-judge bench of the top court, headed by Chief Justice of India (CJI) DY Chandrachud, and comprising Justices JB Pardiwala and Manoj Misra, passed the order of transferring all the pending pleas to it.
The apex court passed the decision after hearing the plea filed by the Centre seeking transfer of all 27 petitions pending in the high courts across India. The court would hear the petitions later on.
Many online gaming companies including Gameskraft, Dream 11 and Games 24x7 also moved their respective appeals before the court challenging the GST imposition. In its 50th meeting in the GST Council held July last year, it was decided to tax online gaming at 28% on full face value with no distinction between games of skill and chance. Similarly, casinos and horse racing will be taxed at 28%. The new tax rate came into effect from October 1, 2023.
The companies opposed the levy of 28% GST on them, because earlier they were paying GST at the rate of 18% on gross gaming revenue (GGR).
In September, GST field officers issued notices of over Rs 1.12 lakh crore to online gaming companies for alleged tax evasion, prompting legal challenges.