Karnataka HC quashes ₹21,000-crore GST notice to Gameskraft

  • As per the authorities, GTPL submitted fake/back dated invoices, that was was uncovered during a forensic examination of the documents.

Livemint
Updated11 May 2023, 06:11 PM IST
The DGGI had served a  <span class='webrupee'>₹</span>21,000 crore tax notice to Bengaluru-based Gameskraft Technology, (File Photo: AFP)
The DGGI had served a ₹21,000 crore tax notice to Bengaluru-based Gameskraft Technology, (File Photo: AFP)

The Karnataka High Court on May 11 revoked a goods and services tax notice against Bengaluru-based online gaming company Gameskraft Technology over an alleged invasion of 21,000 crore.

Earlier in September 2022, a GST intelligence unit, alleging the firm failed to pay 21,000 crore in GST, issued a show-cause notice to Gameskraft Technology. This was the biggest such claim in the history of indirect taxation and it was for the period between 2017 and 30 June 30, 2022, reported MoneyControl.

Apart from this, the GTPL was also accused of promoting online betting through cards, casual and fantasy games like Rummy Culture, Gamezy, and Rummy Time. The officials had alleged that the firm was not issuing invoices to customers.

ALSO READ: Karnataka HC seeks DGGI response on Gameskraft notice

Following this, the GST officials had imposed a 28 percent tax on betting amount of nearly 77,000 crore. "GTPL was engaged in the betting by allowing its players/gamers to place bets in the form of money stakes on outcome of card games played online," the business website quoted the authorities as saying.

As per the authorities, GTPL submitted fake/back dated invoices, that was was uncovered during a forensic examination of the documents. They also alleged that the GTPL induced customers to bet since there was no way of returning the money once it was added in the wallet.

However, GTPL had argued its offerings qualify as skill-based gaming activities, which attract only 18 percent GST on the platform fee. It said that it deducted offerings from the entry fee paid by players. It added the fee they charged ranged between 5-15 percent of the contest entry amount, while the the rest of the money channeled towards the players’ prize pool.

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First Published:11 May 2023, 06:11 PM IST
HomeCompaniesNewsKarnataka HC quashes ₹21,000-crore GST notice to Gameskraft

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