New Delhi: Giving a big relief to online gaming companies, the Supreme Court has stayed the GST demand notices worth Rs 1.12 lakh crore. This decision is being seen as a significant relief for the online gaming industry, which has been struggling with heavy tax liabilities for some time.
What is the matter?
The GST department had issued GST demand notices worth Rs 1.12 lakh crore to online gaming companies accusing them of tax fraud. The department claimed that the companies had evaded a large amount of tax by violating GST rules.
Supreme Court decision
The Supreme Court, while hearing the petition of the companies in this matter, put an interim stay on these demand notices. The court said that until the final decision is taken on this matter, the companies will not have to make any payment.
Side of online gaming industry
Online gaming companies had rejected the allegations, saying they had followed all tax rules. They argued that the tax liability imposed by the GST department could weaken their industry economically and would impact investment in the sector.
Why did the industry get relief?
Experts believe that the online gaming sector is one of the fastest growing industries, which can become a source of huge revenue for the government. This decision of the Supreme Court is an important step towards providing stability and confidence to the industry.
Background of GST controversy
The GST department had put online gaming in the category of ‘wagers and betting’ and had said that 28% GST would be imposed. However, the companies called it entertainment and skill-based gaming and demanded a lower tax rate.
way forward
The Supreme Court has expressed the need for a detailed hearing on this matter and has directed the government and companies to find appropriate solutions. This step of the court is being considered as a big support for the online gaming industry.
