SC stays Karnataka HC order quashing GST notice of Rs 21,000 Cr against gaming platform firm
PTI, Sep 7, 2023, 8:18 AM IST
The Supreme Court on Wednesday stayed the Karnataka High Court order that had quashed the intimation notice of the Goods and Service Tax department seeking Rs 21,000 crore from an online gaming platform.
A bench of Chief Justice D Y Chandrachud and Justices J B Pardiwala and Manoj Mishra issued notice and sought a response to a plea of the Directorate General of Goods and Services Tax intelligence from the Karnataka-based online gaming platform Gameskraft.
The top court listed the matter after three weeks.
The Directorate General of Goods and Services Tax Intelligence has challenged the May 11 order of the Karnataka High Court which had held that ‘rummy’, whether played with stakes or without stakes, is not gambling.
The high court had held that rummy, whether played online or physically, is substantially a game of skill and not a game of chance and thus the online rummy game and other digital games played on Gameskraft’s platforms were not taxable as ”betting” and ”gambling”.
The matter arose after Gameskraft was issued an intimation notice from the GST authorities on September 8 last year, raising a demand of Rs 21,000 crore. The company challenged the notice before the high court.
A single-judge bench of the high court on September 23, 2022, stayed the notice of the GST department, observing that there were several contentious issues involved in the case.
The online gaming company moved the high court again, claiming that despite this stay order, the authorities had illegally and maliciously issued a show-cause notice on the very same day as the high court’s order of September 23, 2022.
The September 8, 2022 notice sought to impose 28 per cent GST on the company’s transactions.
Reacting to the development, the company, in a statement, said, “We have noted the interim order of the Supreme Court. We, along with the skilled gaming industry associations, will put forth our submissions before the Supreme Court in the coming weeks.” ”We have full faith in the judiciary and are confident that the Supreme Court will reaffirm the settled law of over five decades once again and vindicate our and the industry’s position,” it said.
Udayavani is now on Telegram. Click here to join our channel and stay updated with the latest news.
Top News
Related Articles More
Mangaluru: Illegal flexes and banners return to city streets
Leopard sightings in Venur cause alarm; Forest officials install traps
Bidar: CID begins investigation into contractor suicide case
Gadag: Engineer dies by suicide in lodge
Bantwal: Boatman goes missing in Netravati River; search operations underway
MUST WATCH
Latest Additions
LPG tanker overturns on Coimbatore flyover in TN, officials avert major tragedy
Mangaluru: Illegal flexes and banners return to city streets
Actor Allu Arjun granted regular bail in theatre stampede case by local court in Hyderabad
BPSC exam row: Protests continue to rock Bihar as demonstrators disrupt traffic movement
Leopard sightings in Venur cause alarm; Forest officials install traps
Thanks for visiting Udayavani
You seem to have an Ad Blocker on.
To continue reading, please turn it off or whitelist Udayavani.