The high court had quashed the Directorate General of GST Intelligence’s order alleging tax evasion of Rs 21,000 crore in May this year
AGENCIES
The Supreme Court (SC) today quashed Karnataka High Court’s order that quashed the Rs 20,989-crore show-cause notice against Bengaluru-based online gaming company Gameskraft Technologies (Gameskraft) for alleged goods and services tax (GST) evasion.
The apex court said that there is much in the HC order that needs consideration.
The high court had quashed the Directorate General of GST Intelligence’s order in May this year.
The authorities had issued the notice in September last year. It alleged that GamesKraft escaped goods and services tax (GST) payment to the tune of Rs 21,000 crore between 2017 and June 30, 2022.
It added that Gameskraft allowed its clients to place money bets on online games, saying the company was promoting online betting through card, casual, and fantasy games like Rummyculture, Gamezy, and Rummytime.
Authorities had, therefore, slapped a 28 per cent tax — which is applicable on games of chance/betting and gambling — on the firm on a betting amount of about Rs 77,000 crore.