Gaming firms may use grey area in GST law to challenge 'retrospective' taxation: Sources Online gaming companies are preparing to battle it out in courts following show-cause notices for paying 18 percent GST (goods and services tax) instead of 28 percent prior to October 1.

While the firms contend that 28 percent GST is applicable only from this month when the revised law came into effect, the government claims the October 1 revision only brings clarity, and that the law was already in force prior to that.

Certain revenue officials, however, say that prior to the October 1 amendment, the law was a bit of a grey area.

“The law was not very clear, and there seems to be a retrospective application of the law. Which is why our earlier notices demanding unpaid GST were quashed by the court.”