Days after the Karnataka High Court quashed a GST notice issued to online gaming platform Gameskraft, a detailed copy of the order revealed that the single-judge bench of Justice S R Krishna Kumar said the notice was “illegal, arbitrary, and without jurisdiction”.
The proceedings dealt with whether online games under the platform would be considered games of skill or chance, as the latter attracts 28 per cent GST but the former only 18. According to Gameskraft, the majority of these games were rummy, which they argued had been previously held to be a game of skill. The GST department had argued that rummy was a game of chance and hence liable to taxation at 28 per cent.
Source a2ztaxcorp
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