GST Notices to Online Gaming Companies: The Supreme Court today (January 10) has stayed the show cause notice of Rs 1.12 lakh crore Goods and Services Tax (GST) against online gaming companies. The court ordered that further proceedings of the GST notice will be suspended until a definite solution is found.
This matter is for the financial year 2022-23 and the first seven months of the financial year 2023-24. Online gaming companies say that GST should be levied at the rate of 18% instead of 28% till October 1, 2023 because the rule of tax at the rate of 28% was to come into effect from October 1. Whereas, the government says that the amendment that took place on October 1 was a clarification of the already applicable law.
Abhishek A Rastogi, a lawyer representing the gaming companies in the Supreme Court, said – This stay reduces the pressure of possible action by tax officials on gaming companies. The Supreme Court has ensured that the demands in this case do not go beyond the time limit, so that the legal process can continue without any interruption.
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GST Notices to Online Gaming Companies: Its next hearing will be on March 18
The apex court has directed to combine the cases related to gaming companies. Actually, many petitions were filed in different High Courts of the country on this matter. The court transferred all these cases to its court and whatever decision will be given will be for everyone. Now the next hearing of these cases will be on March 18, 2025.
Delta Corp’s stock rose after the court order
After the order of the Supreme Court, the stock of Delta Corp, a company providing online gaming services, saw a rise. After the day’s trading, the stock closed at Rs 118.25 with a gain of 4.37%. In the last 6 months, this stock has given a negative return of 9.23% and 23.39% in a year.
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