SC transfers to itself 27 pleas challenging 28% GST levy on online gaming

New Delhi, April 5, 2024 

The CJI said that rather than different High Courts hearing the same issue and possibly giving different judgments, it would be better to have the Supreme Court hear the case and deliver an authoritative ruling

The Supreme Court on Friday transferred to itself 27 writ petitions which are pending across nine State High Courts, challenging the levy of 28% Goods and Services Tax (GST) on all forms of online real-money gaming.

Chief Justice of India D.Y. Chandrachud said rather than different High Courts hearing the same issue and possibly giving different judgments, it would be better to have the Supreme Court hear the case and deliver an authoritative ruling.

The Centre had sought the transfer of the petitions from the High Courts to the Supreme Court.

The petitions would be tagged with a pending case concerning a decision of the Karnataka High Court, which quashed a GST intimation notice of ₹21,000 crore while holding that online or electronic or digital Rummy played on Gameskraft, a gaming platform, was not taxable as a betting or gambling activity.

The Bench listed the case tentatively on May 1 and 2 for hearing detailed arguments.

Earlier, on January 8, the top court had issued notice to the Centre on a plea filed by the E-gaming Federation against the levy of 28% GST.

The court had also sought a response from the Directorate General of Goods and Services Tax Intelligence in this issue. The petitioners also include Dream 11, Games 24x7, and Head Digital Works.

The GST council had, in one of its meetings in July last year, recommended that online gaming along with casinos and horse racing should be taxed at a uniform rate. It had decided against having any distinction between ‘games of skill’ and ‘games of chance’.

[The Hindu]