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The Supreme Court stays Karnataka HC’s order that quashed the GST department’s ₹21000 crore notice to online rummy games.

Supreme Court of India

Last Updated on September 11, 2023 by Administrator

Recently, the Supreme Court stayed the Karnataka High Court’s order, which quashed the GST department’s ₹21000 crore claim against online rummy gaming platform ‘Gamescraft’.

The Bench of Chief Justice of India (CJI) DY Chandrachud and Justices JB Pardiwala and Manoj Misra was hearing the appeal filed by the directorate general of goods and services tax intelligence challenging the High Court’s order.

The matter originated when the GST department issued an intimidation notice to Gameskraft on September 8, 2022, alleging evasion of tax of ₹21000 crore at the rate of 28% as imposed on gambling under the GST law. The notice was thus challenged by the company before the high court, which held that rummy, whether played online or physically, is substantially a game of skill and not a game of chance and, therefore, not taxable as ‘betting’ or ‘gambling’.

The Supreme Court has asked for a response from Gameskraft and listed the matter after three weeks.

Do not worry…nothing is going to happen in three weeks,” the CJI orally remarked.

Written by- Shagun Behal

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