Online gaming: Wait for GoM’s decision, High Court tells GST authorities

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 to look into online gaming, casinos and lotteries gives its recommendations.

The company had moved court against state GST authorities that had sought payment of tax on the full bet amount instead of only the commission or processing charges, and recovery of the tax amount.

“…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.