Karnataka High Court quashes Rs. 21,000 Crores SCN to Gameskraft. On May 12, 2023, the Karnataka High Court quashed a show cause notice (SCN) issued by the Directorate General of Goods & Services Tax Intelligence (DGGI) to online gaming platform Gameskraft Technologies Pvt. Ltd.

The SCN had demanded Rs. 21,000 crore in GST from Gameskraft for the period between 2017 and 2022.

The court held that the DGGI had not followed the correct procedure in issuing the SCN. The court also held that the DGGI had not provided any evidence to support its claim that Gameskraft was liable for GST.

The court's decision is a major victory for the online gaming industry in India. It is also a setback for the government's efforts to tax online gaming.

Here are some more details about the case: • Gameskraft is an online gaming platform that offers a variety of games, including skill-based games and chance-based games.

• In September 2022, the DGGI issued an SCN to Gameskraft demanding Rs. 21,000 crore in GST. The DGGI claimed that Gameskraft was liable for GST on the revenue it earned from all of its games, including skill-based games.

• Gameskraft challenged the SCN in the Karnataka High Court. The company argued that the DGGI had not followed the correct procedure in issuing the SCN.

The company also argued that the DGGI had not provided any evidence to support its claim that Gameskraft was liable for GST on skill-based games.

• On May 12, 2023, the Karnataka High Court quashed the SCN. The court held that the DGGI had not followed the correct procedure in issuing the SCN.

The court also held that the DGGI had not provided any evidence to support its claim that Gameskraft was liable for GST on skill-based games.

• The court's decision is a major victory for the online gaming industry in India. The court's decision is a positive development for the online gaming industry in India. It clarifies the law on GST and provides much-needed certainty for online gaming businesses.

• The government's efforts to tax online gaming have been met with resistance from the industry. The court's decision is a setback for the government's efforts, but it is not a fatal blow.

The government could still try to tax online gaming in other ways. It remains to be seen whether the government will appeal the court's decision.

If the government does appeal, the case could go all the way to the Supreme Court. Hope you like this brief summary. Thanks and Regards Abhishek Raja “Ram” +91-8882700145; 9810638155 [email protected]