Gameskraft was served a show-cause notice by the DGGI for allegedly evading taxes and operating an online betting site between August 2017 and June 2022.
The Karnataka High Court’s ruling earlier in May, which quashed the notification sent by the Goods and Services Tax (GST) department asserting that Gameskraft, an online gaming company, owed Rs 21,000 crore in back taxes, received a stay order from the Supreme Court on Wednesday.
The DGGI served Gameskraft with a show-cause notice for allegedly evading taxes and engaging in online betting between August 2017 and June 2022, pointing out that the company was promoting online betting through card, casual, and fantasy games like Rummyculture, Gamezy, and Rummytime.
The Supreme Court also sent notices regarding the Centre’s appeal appealing the show cause notice, and it has ordered Gameskraft to reply. The Supreme Court ruled that the matter would be heard in three weeks and that nothing unfavorable would happen during that time. The Centre may now begin recovery procedures against the online gaming company, according to the apex court, which declined to halt it.
Due to initial complaints, Gameskraft argued against the stay on the Karnataka High Court’s order. The online gambling corporation requested that the supreme court halt the collection of debts until the issue was settled. Gameskraft challenged the use of 28% GST on a little income of Rs 10 on a deposited of Rs 100 by players, claiming that it only received a modest sum from the wagers made by players.
