A similar plea had also been filed by another online gaming company, Playerzpot Media. Notices were issued to this company demanding an amount of ₹532 croresas GST with interest and penalty.
Through a petition filed through Khaitan & Co, Playerz argued that the notices gave retrospective effect to amendments to the GST Act that fixed a tax on online fantasy sports services at the rate of 28 per cent.
However, this amendment was effective from October 1, 2023, and could not have been applied retrospectively, the company contended.
It also challenged Section 15(5) of the Central GST Act, claiming that it was arbitrary as it suffered from excessive delegation. Section 15(5) gives power to officers to fix the value of supplies for taxation purposes on the recommendation of the GST Council.
Source: Barandbench
