In a recent legal development, the Supreme Court has taken cognizance of a plea filed by the E-gaming Federation challenging the imposition of a 28% Goods and Services Tax (GST) on various forms of online real-money gaming. The bench, headed by Chief Justice D Y Chandrachud including Justices J B Pardiwala and Manoj Misra, issued notices on the plea after considering the arguments put forth by senior advocate Harish Salve, representing the federation, and Additional Solicitor General N Venkataramani.

The Directorate General of Goods and Services Tax Intelligence has been directed to provide responses to the plea within two weeks. The Court also acknowledged that similar petitions are being heard in various high courts across the country. Notable petitioners in this case include prominent entities like Dream 11, Games 24×7, and Head Digital Works.

The controversy stems from a decision made by the GST council in one of its meetings in July of the preceding year, recommending a uniform tax rate for online gaming, casinos, and horse racing. The council emphasized that there should be no differentiation between "games of skill" and "games of chance."

The Supreme Court has expressed its intention to promptly hear the plea and has appointed a nodal counsel to compile relevant information for the case. This legal challenge reflects the ongoing debate surrounding the taxation framework for online gaming in India, and the outcome may have implications for the industry as a whole.