Bombay High Court Orders Casino Firms to Record Objections and Engage in GST Dispute Over Rs 11,139 Crore Demand.
On Thursday, the Bombay High Court in Goa instructed casino operators to document their grievances and partake in the GST dispute resolution process.
Casino operators had challenged the Director of Revenue Intelligence’s issuance of notices demanding GST payments amounting to Rs 11,139 crore for the period between July 2017 and March 2022. The total amount, including interest and penalties, could surpass Rs 22,250 crore.
According to a notice from September 27, 2023, the casinos were accused of failing to pay GST on the total amount wagered, instead paying GST only on the actual earnings received.
The High Court ordered the Director of Revenue Intelligence to provide the casino companies with the investigation report within two weeks.
The casinos argued that the only investigation report available was the notices themselves.
The High Court emphasized that the absence of the investigation report does not excuse the casino companies from proceeding with the adjudication process.
The court stated, “The petitioners must register their complaints but should not delay the adjudication process.”
It was noted that the reasons for involving the Indian Statistical Institute (ISI) were explained to the casino companies, who yet demanded further clarification on why ISI was engaged.
The court mentioned, “Should the investigation report have sensitive details about source identities, third parties, or irrelevant transactions, it can still be shared with the casino companies after redacting sensitive information. However, completely denying access to the investigation report is unjustifiable,” the High Court expressed.