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Online Gaming GST Decision after GoM Report: HC

The Punjab and Haryana High Court has directed the goods and service tax authorities to not take any coercive action against an online gaming company till an empowered Group of Ministers (GoM) set up by the GST Council gives its recommendations.

The ruling comes as a relief to online gaming firms facing big tax demands.

In this case, the company had moved the High Court against state GST authorities of Haryana that had sought payment of tax on the full bet amount instead of only the commission or processing charges.

“…no adjudication and no coercive steps would be taken against the petitioner till such time the necessary clarification is issued by the empowered Group of Ministers, but they may be permitted to investigate the matter so that if and when the clarification comes they would not have to necessarily reinvent the wheel,” stated the order issued by Justices Ajay Tewari and Alka Sarin on September 29. S-ET

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