28% GST levy on egaming flawed, companies tell SC

Online real-money gaming companies on Tuesday opposed in the Supreme Court the imposition of 28 per cent goods and services tax (GST) on their services, arguing that the levy was fundamentally flawed and contrary to the legal framework.

- BHAVINI MISHRA

Appearing for the online gaming companies, senior advocate V Sridharan argued that the GST provisions before October 2023 were inadequate to impose 28 per cent tax on online gaming operators in the manner attempted by the authorities. The government's reliance on Rule 31A of the GST Rules on value of supply in case of lottery, betting, gambling and horse racing, introduced in 2018, was challenged because it lacked statutory authority under the Central GST (CGST) Act.