On December 15, 2023, the Supreme Court (SC) refused to pass an interim order against GST demand notices to e-gaming companies including Dream 11, Head Digital Works, and Games 24X7. A three-judge bench posted the batch of petitions filed by online gaming companies (e-gaming companies) challenging the constitutional validity of the government’s decision to impose 28% GST to January 08, 2024. The petitions arose after a GST of Rs. 6,497.29 crore and Rs. 20,929.37 crore were demanded from Head Digital Works and Play Games 24X7 respectively. The matter was heard by a bench comprising Chief Justice of India DY Chandrachud, Justice Manoj Misra, and Justice JB Pardiwala.
During the court proceedings on December 15, Additional Solicitor General N Venkataraman told the bench that the issues related to taxation on e-gaming is a ‘serious and a sensitive’ matter. Further, the Senior counsel appearing for the federation and the companies, Badri Narayanan, said, “The matter has all India significance, and show-cause notices worth several times the companies’ turnover are being issued. We want limited protection. Show cause proceedings have been going on for a few months, we are giving all the information, but they should hold their hands for three more weeks.” Also, Senior Advocate Harish Salve urged the SC to pass a direction to the government in relation to the GST demand notices and said that the companies are under pressure from the GST department. After hearing the submissions, the bench posted the batch of petitions for hearing on January 08, 2024.