Supreme Court Stays Proceedings in ₹780 Crore GST Notice Against Gaming Company
The Supreme Court of India has issued an order staying proceedings concerning a massive Goods and Services Tax (GST) notice of approximately ₹780 crore issued to the online gaming company, Nirdesa Networks.
Key Points of the Judicial Action
- Interim Relief: The stay order provides immediate, interim relief to Nirdesa Networks by halting any coercive action or further proceedings based on the large tax notice issued by the GST authorities.
- Controversial GST Calculation: The tax demand is part of a series of large notices issued to online gaming companies that contend the GST must be calculated on the entire face value of bets placed, rather than just on the platform’s commission (Gross Gaming Revenue or GGR).
- Constitutional Challenge Under Consideration: The Supreme Court is currently examining a batch of petitions from various gaming companies challenging the retrospective application and constitutional validity of the GST amendments related to the tax calculation method for the online gaming industry. The stay order is a precautionary measure pending the final outcome of these crucial constitutional matters.
- Significance: The decision is significant for the entire online gaming industry, as it prevents the enforcement of large, retrospective tax demands until the apex court settles the fundamental question of how GST should be levied on the sector.
Source :- Economic Times