BENGALURU: In a big blow to online skill gaming platform Gameskraft, the Supreme Court on Wednesday issued a stay order on the Karnataka High Court verdict passed in May quashing a Rs 21,000 crore show-cause notice issued to online gaming platform Gameskraft for GST evasion. The matter has been listed for hearing after three weeks.
In September last year, the gaming platform challenged the notice by the Directorate General of Goods and Services Tax(GST) Intelligence. The notice was for the period from 2017 to June 30, 2022. Initially, it was alleged that Gameskraft had evaded `419 crore and subsequently, it was increased to `5,000 crore and then to `21,000 crore in 2022. “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,” Joyjyoti Misra, Group General Counsel, Gameskraft, said.
The court has also allowed the Directorate of Revenue Intelligence of GST to file a rejoinder. It was argued in the SC that Gameskraft services come under betting and gambling and that it is subject to 28% GST. The platform was also accused of promoting online betting.
Launched in 2017, Gameskraft platforms include Rummy Culture, Rummy Partner and Gamezy. Many gaming companies have been impacted after the government’s decision to impose 28% GST on online real-money gaming. At least five start-ups have had to either lay off or shut operations. It is said that many early-stage companies might shut operations, going forward.