Will the GST Council put an end to the GST dilemma?

financialexpress.com:

The fate of the Indian online skill-gaming industry is likely to be decided at the upcoming 50th GST Council meeting on July 11. The government has recognised online skill-based gaming as a promising sector and has also provided support in the form of favourable policies. The Ministry of Electronics and Information Technology (MeiTy) has introduced the Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021 (IT Rules), providing regulatory clarity and a boost to the sector. The contribution of the online skill-based gaming sector to the Indian economy cannot be overstated.

Online skill-based game operators are technology companies that provide an infrastructure platform for hosting games. They effectively operate as an intermediary between players and simply host the games. Operators have no impact on game play. Users select the games they want to play based on their skills and the money they want to stake to compete with other players. For offering the infrastructure platform to the players, gaming operators charge a nominal service fee/commission. The players, in turn, contribute an amount to the prize pool, from which the gaming operator distributes prize money/winnings to the game’s winners (Buy-in Amount).

Recently, Indian online gaming operators have found themselves amid tax disputes. The issue of an online skill-based gaming operator’s GST liability is not new. In 2018, it first surfaced in a lawsuit involving a fantasy sports platform before the Bombay High Court. Although being decided in favour of the taxpayer, the case is still ongoing before the Supreme Court. The Director General of Goods, Services Tax Intelligence (DGGSTI) recently demanded INR 21,000 crores from an