Online gaming GST issue serious says ASG, SC lists A23, RummyCircle writs for further hearing
At the outset, the Additional Solicitor General of India (ASG) submitted that the Finance Ministry took cognisance of a news article and asked him to appear today in the writ petitions, although no caveat was filed and an advance copy of the writ petition was not served. He submitted that the issue pertains to taxation on online gaming, and it is a fairly serious and sensitive matter.
Senior Counsel representing EGF and the online rummy companies submitted that the matter has all India significance and show cause notices worth several times the companies’ turnover are being issued. He further submitted that if the notices fructify into demands, then the companies are looking at bankruptcy. He further prayed that assurance be given that the department keep their hands off and no action on the showcause notices be taken until further hearing.
Referring to the Gameskraft matter where the Supreme Court issued ad-interim stay on the Karnataka High Court judgment quashing the Rs. 21,000 crore showcause notice issued to the company, CJI Chandrachud remarked that adjudication on the GST issues pertaining to online gaming was pending before this court in a similar manner and no interim relief can be granted to the online gaming companies at this stage.
The Supreme Court thereafter asked for copies of the writ petitions to be served on the ASG and directed the matters to be tagged along with the Gameskraft matter and listed the matters for further hearing on January 08, 2024, after the winter vacations of the apex court.
