The Supreme Court today transferred all the petitions concerning Goods and Services Tax (GST) notices issued to various gaming companies across India to itself. The decision to allow central Government's plea seeking such transfer was made by a bench comprising Chief Justice of India (CJI) DY Chandrachud along with Justices JB Pardiwala and Manoj Misra.

A total of 27 petitions, previously pending in nine different High Courts, have been transferred to the Supreme Court. This move aims to consolidate the legal proceedings surrounding the tax evasion and underpayment of tax allegations against these gaming companies.

One of the pivotal cases involved Gameskraft Technologies Private Limited, which had been issued a notice by the GST department demanding a substantial sum of ₹21,000 crore. The Karnataka High Court had earlier ruled in favor of Gameskraft, stating that the online gaming activities conducted by the company did not fall under the taxable categories of 'betting' and 'gambling'. However, this decision was challenged by the tax authorities, leading to further legal contention.

The Supreme Court's decision to transfer these petitions comes after it had previously stayed the Karnataka High Court verdict regarding Gameskraft's case. This indicates a broader interest in addressing the complex legal issues surrounding online gaming and its tax implications.

Furthermore, the Ministry of Finance had revealed in December 2023 that a significant number of show cause notices, totaling 71, had been issued to various online gaming companies during the financial years 2022-23 and 2023-24. These notices amounted to a substantial GST demand of ₹1,12,332 crore. However, the actual determination of GST liabilities is pending adjudication under the provisions of the CGST Act, 2017.

The decision to consolidate these petitions under the Supreme Court's jurisdiction reflects a concerted effort to streamline legal proceedings and ensure uniformity in addressing tax-related disputes concerning the gaming industry.

Case: Union of India vs. Deltatech Gaming Ltd and Another,

T.P.(C) No. 755-781/2024.