🚀 Medial Secures Investment on Shark Tank India - Fueling the Future of Professional Social Networking. 🔥

Startup Showcase

Premium Content

Try our Valuation Calculator →

News on Medial

E-gaming companies plan to move court against GST demand

Economic Times

Economic Times · 2y ago

E-gaming companies plan to move court against GST demand

Online gaming companies, such as Dream 11 and Games 24x7, are facing GST demands exceeding Rs 55,000 crore and are planning to seek legal redressal after receiving pre-show cause notices. Executives in the industry consider this a major setback as the sector is already dealing with various challenges.

Related News

SC refuses interim relief to Games 24x7 & Head Digital Works on tax notices

Inc42 · 1y ago

SC refuses interim relief to Games 24x7 & Head Digital Works on tax notices

The Supreme Court has denied interim relief to e-gaming companies Games24x7 and Head Digital Works, regarding Goods and Services Tax (GST) demand notices. The court will consider the constitutional validity of imposing a 28% GST on the full value of bets placed in online games, instead of the gross gaming revenue. The online gaming industry in India is also facing other challenges, with platforms like Quizzy, OWN, and Fantok temporarily suspending operations due to changing tax and regulatory conditions. Show-cause notices for suspected tax evasion have also been issued to several companies.

Setback after cashbacks: Gaming industry faces fresh GST trouble - The Economic Times

Economic Times

Economic Times · 4m ago

Setback after cashbacks: Gaming industry faces fresh GST trouble - The Economic Times

The real money gaming industry in India is facing fresh challenges from GST authorities. Tax officials demand GST on cashbacks and bonuses given to players, treating these as taxable under Rule 31B. This intensifies the ongoing conflict over retrospective GST collection from 2017 to 2023. Gaming companies argue this interpretation is flawed and plan to challenge it in the Supreme Court. Some firms are considering forming a collective legal strategy as the tax issue gains momentum.

Online Gaming GST Row: SC Stays ₹5,712-Crore Demand Against Paytm’s First Games

OutlookIndia

OutlookIndia · 6m ago

Online Gaming GST Row: SC Stays ₹5,712-Crore Demand Against Paytm’s First Games

The Supreme Court has stayed a ₹5,712-crore GST demand against Paytm's First Games, a real-money gaming platform. This dispute involves the classification and taxation of real-money gambling platforms under GST, impacting the broader online gaming industry. First Games challenged a retrospective GST notice, seeking relief on the GST rate applied to platform fees versus total bets. The issue highlights ongoing controversies about GST categorization and taxation in the Indian online gaming sector.

GST Battle: Online Gaming Companies' Supreme Court Test

Money Control

Money Control · 1y ago

GST Battle: Online Gaming Companies' Supreme Court Test

Online gaming companies and federations are taking their battle against crippling financial notices related to Goods and Services Tax (GST) to the Supreme Court. They are seeking relief from the financial burden imposed by the GST regulations. The Supreme Court will be hearing their pleas as these companies face a significant challenge in dealing with the GST matter.

SC stays GST notices worth over Rs 1 L Cr against online gaming firms for tax fraud

YourStory

YourStory · 10m ago

SC stays GST notices worth over Rs 1 L Cr against online gaming firms for tax fraud

The Supreme Court has stayed GST authorities' showcause notices, valued at over Rs 1 lakh crore, against online gaming firms over alleged tax evasion. Justices J B Pardiwala and R Mahadevan ruled that all proceedings against these companies remain paused, pending further hearing. The GST law was amended in October 2023 to require foreign online gaming firms to register in India, with a 28% GST on bets. Various firms challenged these demands, and the Supreme Court consolidated cases for review.

28% GST On Gaming: SC Schedules Final Hearing On July 25

Inc42 · 4m ago

28% GST On Gaming: SC Schedules Final Hearing On July 25

The Supreme Court of India will hold a final hearing on July 25 concerning GST evasion allegations totalling INR 1.12 Lakh Cr against online gaming companies. These companies argue that the 28% GST on real money games is flawed and lacks legal basis since Rule 31A of the GST Rules did not comply with mandatory processes. The gaming platforms claim retrospective GST notices and unclear provisions violate tax principles, seeking revocation of these notices.

HC quashes DGGI’s ₹21k cr tax demand from Gameskraft

Livemint

Livemint · 1y ago

HC quashes DGGI’s ₹21k cr tax demand from Gameskraft

The Karnataka High Court has overturned a ₹21,000 crore ($2.8 billion) goods and services tax (GST) demand on Gameskraft, a Bengaluru-based online gaming company. The court ruled that the Directorate General of GST Intelligence (DGGI) misinterpreted the law and that online rummy is a game of skill, not chance. The ruling is seen as a precedent for online gaming startups and may influence discussions on taxation policies for the industry by the GST Council. The verdict brings clarity and relief to the online gaming sector in India.

Supreme Court to hear gaming firms’ challenge to 28% GST rule

Economic Times

Economic Times · 10m ago

Supreme Court to hear gaming firms’ challenge to 28% GST rule

The Supreme Court is set to hear petitions from online gaming firms and casinos challenging the 28% GST imposition on the full value of bets rather than gross gaming revenue. These firms face significant retrospective tax demands since 2023, fearing coercive actions by tax authorities. The Court had earlier stayed a Karnataka High Court judgment demanding Rs 21,000 crore GST from GamesKraft. The petitions argue against the government's view equating all online betting to gambling for tax purposes.

SC seeks centre’s reply on pleas of Games24x7, head digital works on GST notice

Inc42 · 1y ago

SC seeks centre’s reply on pleas of Games24x7, head digital works on GST notice

The Supreme Court of India has issued notices to the Centre and the GST department in response to pleas by online gaming companies Head Digital Works and Games24x7. The companies are challenging the retrospective imposition of a 28% Goods and Services Tax (GST) on the full value of bets placed, rather than on the gross gaming revenue. The court has asked both parties to respond to the plea within two weeks. The case is expected to be heard in the coming months as the online gaming industry grapples with the challenges imposed by recent GST changes.

Government to impose 28% GST on online games

Entrackr

Entrackr · 2y ago

Government to impose 28% GST on online games

The 50th Goods and Services Tax (GST) Council meeting on Tuesday decided that a 28% GST will be levied on the full face value of online gaming. The move deals a severe blow to the gaming companies that offer real-money games.

Trackers

Active Indian VC’s

OG Capital Email

With a hands-on approach, OG Capital aims to invest in over 20 promising...

Accel Partners Email

Early and growth-stage investments in disruptive technology companies with...

Early-stage venture capital firm investing in technology startups in India. Focus on...

Access All Trackers

Startup Showcase Winners

Sept 2025

Your Health, Simplified with Smart Care

An ecosystem for curated creative partnerships

Your Health our Priority.

Enter Ongoing Startup Showcase

Top Users

Trending News on Medial

Nvidia releases open-source softw ...

30 Startups To Watch: Startups Th ...

Marvell in advanced talks to buy ...

Download the medial app to read full posts, comements and news.