Many online gaming companies, which have received Goods and Services Tax (GST) notices are preparing to argue in courts that even if a game of skill is played with money, it remains a skill game, contrary to the interpretation of the authorities, two persons familiar with the development said.
The Supreme Court is set to hear a case related to the matter on January 8.
“The GST authority is saying that if a game of skill is played with money, it becomes betting or gambling. But the involvement of money does not change the nature of the game. If one plays chess with money, chess does not become gambling but remains a game of skill. This is the argument the gaming companies will present in courts,” one of the persons told Moneycontrol.
Online gaming companies have been sent 71 show-cause notices for alleged GST evasion worth Rs 1.12 lakh crore in 2022-23, and in the first seven months of 2023-24. The notices are based on the interpretation that any online game played with money is betting, which has always been taxed at 28 percent.
Read more at: moneycontrol
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