Gaming companies are reportedly seeking the Supreme Court’s intervention against retroactive GST demands, which could lead to hefty tax burdens exceeding their earnings. 

As per ET, at least two gaming companies have filed ‘interlocutory applications’ in December to restrict the tax office from compelling them till SC gives a final verdict in the new 28% GST regime for online gaming companies, which was implemented in October 2023.

This comes at a time when the GST department is beginning to file adjudication notices to the gaming companies which owe 28% tax on the entire betting money for past years. This tax was imposed on the amount being paid at the entry level for online gaming. Back then, the authorities said that the decision was aimed at regulating online real money gaming. 

The Apex court is likely to hear the matter this week. 

Source: Inc 42