- India’s Supreme Court is reviewing a case on GST application to online gaming.
- The decision will address the GST rate for past years and retrospective application.
- Key issue is whether games like rummy should be taxed at 28% as gambling or 18% as skill games.
- Tax authority wants GST on full bet value; companies argue it should be on service fees only.
- Law amended in October 2023 for a flat 28% GST on all online gaming.
- Karnataka High Court ruled in favor of Gameskraft against a large tax demand.
- Multiple companies face significant tax demands for past periods.
- Legal representatives argue retrospective tax changes harm business certainty.
- Concerns raised over inconsistent tax policy and retroactive enforcement.
- Global investors are closely watching the outcome.
- The ruling will impact the future of real-money gaming and taxation policy in India.
Source: globalvatcompliance.com
Note that this post was (partially) written with the help of AI. It is always useful to review the original source material, and where needed to obtain (local) advice from a specialist.
