The Supreme Court on Monday sought the response of the Central government and the Directorate General of Goods and Services Tax Intelligence on a plea filed by online gaming companies challenging the levy of 28 percent Goods and Service Tax (GST) on all forms of online real-money gaming.
A bench of Chief Justice of India DY Chandrachud with Justices JB Pardiwala and Justice Manoj Misra issued notice after hearing the counsel for the gaming companies, Senior Advocate Harish Salve.
The petitioners include Dream 11, Games 24x7, and Head Digital Works.
The Goods and Services Tax (GST) Council in its 50th meet in July 2023 had recommended that online gaming along with casinos and horse racing be taxed at a uniform rate. The Council decided that there should be no distinction between “games of skill” and “games of chance."
Last year, the Central government had proposed the introduction of online gaming regulations in the form of amendments to the Information Technology. These draft Rules were notified a few months later.
Among the highlights, the draft Rules define a gaming platform as an “online gaming intermediary” which will have the games registered with a “self-regulatory body” comprising a board of directors or the governing body.
The regulatory body was proposed to be registered by the ministry upon an application made by it.
Additional Solicitor General N Venkataraman appeared for the Central government.