NEW DELHI: The Supreme Court on Wednesday agreed to hear petitions by online gaming companies seeking a stay on GST demands and related proceedings. The apex court will hear the gaming companies’ plea on Friday.
Gaming companies on Tuesday approached the court seeking urgent hearing to prevent adverse actions by the GST department such as tax recoveries, bank account freezing and issuance of summons while awaiting a resolution.
“Given that the final hearing on the constitutional validity of the tax imposed on gaming companies may take some time, the companies have requested that the matter be heard on Friday,” says tax lawyer Abhishek Rastogi, who is representing gaming companies.
The controversy around GST on gaming companies centers on whether the correct rate should be 18% or 28%, the rate levied on betting, gambling, and similar activities.