India's online gaming industry is challenging the Supreme Court's May 27 ruling that upheld the 28 per cent GST on online gaming, potentially triggering retrospective tax demands of over Rs 1.5 lakh crore.
The VATfaqs digest
Global VAT news, delivered Tuesday and Thursday. Free, curated from 50+ official sources, no spam.
No spam · Unsubscribe any time
A2Z Taxcorp · 11 days ago
The article explains that while GST was designed to eliminate cascading tax and enable seamless input tax credit (ITC), the reality has become a compliance-driven process. ITC eligibility now hinges on invoice matching, GSTR‑2B reconciliation, Rule 36(4), Section 16(2)(aa) restrictions, and the Invoice Management System (IMS), making credit availability conditional on supplier filings and compliance data. Businesses face working‑capital pressure and litigation due to delayed or denied ITC.
GSTZen · 13 days ago
The article explains that for services, GST becomes payable immediately upon receipt of an advance, while for goods, advance receipts are exempt under Notification No. 66/2017-Central Tax and GST is due only when goods are supplied. It also details the required receipt and refund vouchers and how to calculate GST on inclusive and exclusive advances.
Economic Times · about 2 months ago
The Supreme Court has upheld a 28% GST on online gaming, applying it retrospectively to curb unregulated wagering. The ruling targets real‑money games and aims to aid investigations into money laundering. The decision marks a significant shift in India's approach to digital gambling.
Economic Times · about 2 months ago
The Supreme Court dismissed Uttar Pradesh’s attempt to levy a 21% state VAT on natural gas transported from Andhra Pradesh to Uttar Pradesh, ruling the transaction is an interstate sale governed by the Central Sales Tax Act. The decision upheld a 2012 Allahabad High Court judgment that quashed UP’s assessment orders against Reliance Industries, Tata Chemicals and IFFCO. The ruling confirms that gas transported through common pipelines remains an interstate sale even when co‑mingled.
Aviation Jeta · about 2 months ago
The Delhi government has lowered the VAT on Aviation Turbine Fuel (ATF) from 25% to 7% for airlines operating in the capital. The reduced rate will apply for an initial six‑month period, providing relief to airlines and passengers amid rising fuel costs.
Republic World · about 2 months ago
The Delhi government has reduced the VAT on aviation turbine fuel (ATF) from 25% to 7% effective 16 May 2026. The change applies to airlines purchasing fuel at Delhi airports, providing significant cost savings for the aviation sector.
Key Takeaways
As of 27 May 2026, the Supreme Court upheld a 28 per cent GST rate on online gaming in India.
The Supreme Court's 27 May 2026 ruling applied the 28 per cent GST regime retrospectively to transactions before the sunrise clause became operational in October 2023.
The sunrise clause provisions for online gaming in India came into force in October 2023.
Play Games24x7, Junglee Games and Head Digital Works have filed review petitions against the Supreme Court's 28 per cent GST verdict.
Primary source
Read the full article at Indian Television Dot ComThis summary was published on VATfaqs.com on 14 July 2026. It relates to VAT developments in India. The original source is Indian Television Dot Com.
