Supreme Court stays GST showcause notices issued to Majestic Pride Group, tags matter with Gameskraft batch of cases

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Following the order in the Gameskraft batch of cases where the Supreme Court earlier this month had stayed all showcause notices issued by the Goods and Services Tax (GST) authorities against online money gaming and casino companies, the apex court by an order dated 22^nd January, 2025 also stayed showcause notices issued by the Goa State GST authorities against three entities of the Majestic Pride Casino Group.

A bench of Justices JB Pardiwala and R. Mahadevan while considering writ petitions filed by three entities associated with Goa’s Majestic Pride Casino Group, viz., Golden Peace Infrastructure Private Limited, M/s Atlantis Entertainments and Golden Peace Hotels and Resorts Private Limited noted that showcause notices have been issued by the Goa state department for the financial year 2017-18 seeking dues including penalty and interest considering the entire sum of monies bet by the customer as the total value of the supply undertaken by the three casinos.

The Supreme Court also observed that since in the Gameskraft batch of cases all showcause notices have been stayed considering that the matters are ripe for final hearing and also since some of the showcause notices issued for the year 2017-18 may be time barred by the first week of February, 2025, the showcause notices issued to the Majestic Pride Group also ought to be stayed until final disposal of all online gaming and casino-related GST matters.

The court also proceeded to tag the three writ petitions filed by the Majestic Pride Group with the Gameskraft batch of cases pertaining to online gaming and casinos. The entire batch of cases are scheduled to be listed for final hearing on 18^th March, 2025. Industry experts believe that the outcome of the Gameskraft matter will be a make-or-break event for the online gaming and casino industry.

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