Shares of major gaming companies such as Delta Corporation and OnMobile Global soared in trading on Friday after the Supreme Court granted a stay on proceedings related to show-cause notices issued by the tax department.
The show cause notification was related to the imposition of 28% Goods and Services Tax on online gaming companies and was a cause for concern for the industry.
“This development highlights the evolving legal and policy landscape for online gaming in India, and the Supreme Court’s final ruling is likely to shape the future of the industry.” Rastogi Chambers said Abhishek A Rastogi, founder of , who represented the gaming company before the court. supreme court.
The Supreme Court has suspended all SCN-related proceedings pending final disposition of the case, which is currently scheduled for March 18. The tax department had previously informed the court that some of these notices could expire if postponed. was not imposed.
For now, the industry remains cautiously optimistic, awaiting the Supreme Court’s final ruling in March.
This comes after the online gaming company on Wednesday sought a cease and desist notice for the show, fearing coercive action from tax authorities. The companies argued that the stay ensures that no demands will be made until the Supreme Court issues a final ruling on the matter.
The total tax demand from these electronic gaming companies is around Rs 1,500 crore.
