28% GST levied on online gaming has been in effect since October 1st

This has affected several gaming companies across the country

Delta Corp were successful in obtaining an interim order

Ever since the 28% Goods and Services Tax (GST) which was levied on online gaming has been in effect, which is since the beginning of October,  gaming firms have been served notices adding up to Rs 1 lakh crore as per a report in Reuters. This has affected several gaming companies across the country. “The amount for which show cause notices have been issued to online gaming companies is around Rs 1 lakh crore,” an anonymous government official said in an interaction with Reuters. 

Delta Corp, a Goa based casino operator approached the court and were successful in obtaining an interim order that disallowed tax officials from making decisions without the court’s prior approval. This had resulted in an increase in their share price by 5.88%. The Hon’ble High Court of Bombay at Goa considered the writ petitions filed by the Company and its subsidiaries on 23rd October, 2023. Based on a statement made on behalf of the concerned tax authorities, the Hon’ble High Court has directed such authorities not to pass any final orders on the captioned show cause notices without the prior permission of the Hon’ble High Court. Dates have been fixed for completion of pleadings, and the hearing and final disposal of such writ petitions” Delta Corp said as per a report in India Today.