📰 𝗞𝗮𝗿𝗻𝗮𝘁𝗮𝗸𝗮 𝗛𝗶𝗴𝗵 𝗖𝗼𝘂𝗿𝘁 𝗥𝘂𝗹𝗶𝗻𝗴: 𝗥𝘀. 𝟮𝟭,𝟬𝟬𝟬 𝗖𝗿𝗼𝗿𝗲 𝗚𝗦𝗧 𝗗𝗲𝗺𝗮𝗻𝗱 𝗤𝘂𝗮𝘀𝗵𝗲𝗱 𝗳𝗼𝗿 𝗢𝗻𝗹𝗶𝗻𝗲 𝗚𝗮𝗺𝗶𝗻𝗴 𝗖𝗼𝗺𝗽𝗮𝗻𝘆

📢 The court ruled, "Games such as rummy, which are predominantly skill-based, cannot be taxed under the 'gambling and betting' category, and are therefore not subject to the GST rate applied to gambling."

🔍 𝗙𝗮𝗰𝘁𝘀: 𝗖𝗮𝘀𝗲 𝗧𝗶𝘁𝗹𝗲: Gameskraft Technologies Pvt. Ltd. vs Directorate General of GST Intelligence (DGGI) 𝗖𝗮𝘀𝗲 𝗡𝘂𝗺𝗯𝗲𝗿: W.P. 19570/2022 𝗗𝗮𝘁𝗲: 11-May-2023

𝗜𝘀𝘀𝘂𝗲: The DGGI had issued a ₹21,000 crore GST demand to Gameskraft, alleging that the online rummy offered by the platform fell under gambling. The company argued that rummy is a game of skill, not chance, and should be taxed accordingly.

⚖ 𝗝𝘂𝗱𝗴𝗺𝗲𝗻𝘁: The Karnataka High Court quashed the GST demand, holding that games of skill, like rummy, do not fall under the "betting and gambling" category and are subject to a lower tax rate. However, the case is now pending before the Supreme Court due to a stay order on the High Court's decision.

📜 This ruling provides relief to the online gaming industry by clarifying that skill-based games cannot be taxed as gambling under GST law, ensuring a distinction between skill-based and chance-based gaming. Team GSTpanacea 7503031378