Supreme Court Stays Karnataka HC Verdict on GST Applicability to Online Rummy i.e. Rs. 21,000 Crore Notice to GamesKraft

The Supreme Court has stayed a Karnataka High Court judgment that held that online rummy games are not taxable under the Goods and Services Tax (GST) Act. The court has ordered an interim stay of the judgment pending further hearing.

The Karnataka High Court had ruled in May 2023 that online rummy is a game of skill and not of chance, and therefore does not fall under the definition of "betting" or "gambling" under the GST Act.

The court had also held that the platform fees collected by online rummy operators are not subject to GST.

The Supreme Court's stay order is a setback for online rummy operators, who had been hoping to avoid paying GST on their operations.

The court has also not yet ruled on the merits of the case, so it is still possible that online rummy could be held to be taxable under the GST Act in the future.