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Gaming Industry Approaches Supreme Court Against Retro GST Tax Demand

The retro GST tax demand stunned the Indian real money gaming industry, and there has been word that some gaming companies shut shops due to the amounts they were supposed to pay. The IT department has wanted companies to pay a whopping 28% per cent tax on total betting pools since January 2018. 

This has sent the Indian gaming industry into a tizzy. Gaming companies have filed ‘interlocutory applications’—basically interim relief—to stop the tax demands until the apex (lower courts) decide on several aspects pertaining to the real-money gaming industry in India. Some gaming companies have received Show Cause Notices, which will turn into Tax Demand notices after the February 2025 deadline. If there are tax demand notices, they could be heavily detrimental to a company’s existence.

The gaming companies want the Supreme Court to address multiple issues. One of those is the legal ambiguity about whether card games like poker and rummy are skill-based or luck-based. If the Supreme Court decides either way, it could be a crucial moment for the Indian real-money gaming industry.

While all eyes will be on the Supreme Court ruling, poker and online gaming are becoming more mainstream in India. PM Narendra Modi recently said that Indian gamers and the IT industry should drive the gaming industry.

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ALSO READ: GST Council Offers No Relief For The Online Gaming Industry

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GST Retro Tax Industry Reactions

The GST and retro GST demands have been discussed in the poker industry. During the latest GST Council Meeting of 2024, there were rumours that the Government might consider decreasing the 28% tax on deposits, but that was not to be. Earlier, MPL had laid off 350 employees after the 28% GST levy. The proposal to levy taxes was devastating to the industry.

In such a scenario, it remains to be seen whether the Supreme Court ruling on the GST retro tax will boost the gaming industry or snuff out the lives of some companies with lower revenue and, therefore, no way to pay the retro tax. Whatever the outcome, this Supreme Court ruling will definitely be a landmark moment for the Indian gaming industry. Gutshot Magazine will keep you updated with any information on this front.

Gutshot Magazine offers all the latest updates and news related to the real money gaming and poker industry. From corporate and federal decisions that might impact the poker industry to information about the various poker tournaments to the winners’ lists and interviews with them, we have it all. 

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