Govt mulls relief on retrospective GST on e-gaming
The government is considering granting relief to the online gaming industry by exempting them from paying the Goods and Services Tax (GST) at the rate of 28% on the full face value of bets for the pre-October 1, 2023 period, official sources privy to matter told FE, on condition of anonymity.
This would mean that the highly contentious “retrospective levy” of the tax would be annulled, irrespective of the outcome of the Supreme Court case in this regard.
In February, revenue secretary Sanjay Malhotra had told FE: “The matter (28% GST of full face value of bets for pre-October 1 period) is in the court. The courts and, if need be, the GST Council will decide this matter. The judiciary and the council always take a prudent, balanced view of issues.”
The Supreme Court on Friday said it would hear several petitions contesting tax demand notices requiring online gaming firms to remit 28% GST on the full face value of bets. These petitions include a batch of 30 cases filed by online real money gaming enterprises. They have challenged retrospective GST notifications that demand payment amounting to thousands of crores, calculated at a rate of 28% based on the face value of bets. These cases are currently awaiting adjudication by the Supreme Court.
