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Advocate Harish Salve Argues Constitutional Validity Of 28% GST

The now eponymous court case regarding 28% GST on online gaming has reached its sixth day, and Advocate Harish Salve has now questioned the Constitutional validity of the GST component. The case is connected to Rule 31a of the CGST Rules, which outlines the method for determining the value of supply in cases involving lotteries, betting, gambling, and horse racing. This rule provides specific valuation mechanisms that override the general provisions under Section 15 of the CGST Act for these activities.

In a fresh salvo, Advocate Harish Salve maintained that online gaming companies do not fall under the GST purview, as they offer gameplay and do not fall under the supply of goods or services. He further contended that categorising these games as gambling for taxation purposes contradicts the constitutional scheme. According to him, such taxation should fall under Entry 97 of List I of the Constitution, rather than being brought within the scope of GST.

The petitioners argued that it violates the 101st Constitutional Amendment, which effectively removed the states’ authority to tax gambling and betting under Entry 62 of the State List.

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ALSO READ: Online Poker Platform Pocket52 Shuts Amidst GST Turmoil

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Meanwhile, in a development that stunned the real-money gaming industry, Gameskraft has paused Pocket52, one of the biggest real-money gaming apps in India. The reason given is a ‘strategic pause’, and an official statement contended that Gameskraft remains committed to the poker ecosystem.

The move has brought back memories of the turbulent times for the Indian poker industry, when company after company shut down in the background of the reciprocal GST notice slapped on poker real money gaming companies just two years ago.  The final hearing of the case is scheduled for later this month, and what happens next remains to be seen.

Gutshot Magazine provides all the latest news and updates related to real-money gaming and the poker industry. From poker tournament itineraries to a list of winners of those tournaments to interviews with some of the biggest names in the industry, we have it all. We also offer information about any federal and corporate decisions that might impact the real-money gaming and poker industry. To know more, keep reading.

 

 

 

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