The Supreme Court on Friday stayed the proceedings on show cause notices issued by the Directorate General of GST Intelligence (DGGI) to online gaming companies and casinos. The decision, led by a bench headed by Justice JB Pardiwala, comes as the apex court prepares for the final hearing on the matter scheduled for March 18.

The case involves a total of 51 petitions filed by online gaming companies and casino operators, challenging the government’s decision to impose a 28% Goods and Services Tax (GST) on the entire value of bets placed by players.

The petitioners argue that the tax should instead apply only to the gross gaming revenue, a model used in several other jurisdictions globally.

The notices, issued since 2023, had prompted widespread concerns across the gaming industry, which claimed that the retrospective taxation policy could cripple operations and lead to job losses. Several companies have called for the policy to be reconsidered, citing its potential to disrupt the fast-growing gaming ecosystem in India.

The court’s decision to stay the notices provides temporary relief to the industry while it awaits a final verdict in March.

Source: The Economic Times