Legal experts are casting doubt on the legitimacy of the goods and services tax (GST) demands exceeding Rs 1 lakh crore on Indian online gaming and gambling companies. Critics argue that these demands, which span past periods, may not withstand legal scrutiny, especially considering the retrospective nature of the tax claims. Concerns arise as these notices seemingly overlook the established legal distinction between games of skill and games of chance, a differentiation upheld by prior Supreme Court and High Court rulings. Gaming companies affected by these demands are anticipated to challenge them in their respective high courts, citing questionable legal foundations and potential violations of previous court decisions. Critics further emphasize the arbitrary nature of GST amounts sought, surpassing the companies’ total revenues and potentially causing disruptions in their operations.
Legal Experts Question Legitimacy of Over Rs 1 Lakh Crore Retrospective Tax Demands on Gaming Firms
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