Gaming company faces biggest GST notice of Rs 21,000 crore

[hyperbole]

https://timesofindia.indiatimes.com/city/bengaluru/bengaluru-gaming-company-faces-biggest-gst-notice-of-rs-21000-crore/articleshow/94441531.cms

Bengaluru: Gaming company faces biggest GST notice of Rs 21,000 crore

TNN / Sep 26, 2022, 05:35 IST

BENGALURU: Bengaluru-based gaming firm Gameskraft Technology has been accused of not paying GST of Rs 21,000 crore between 2017 and June 30, 2022. Gameskraft now has the dubious distinction of being charged by the Directorate General of GST Intelligence (DGGI) with the largest indirect tax show-cause notice in history, according to reports. 
Gameskraft, started in 2017 by a group of gamers, provides web and mobile-based real-money games likeRummy Culture, Gamezy, and Rummy Time, where players can wager bets. 
The DGGI accused the gaming firm of promoting online betting through their card, casual and fantasy game offerings and said Rs 77,000 crore of bet amounts placed between 2017 and June 30, 2022 were subject to a 28% tax. A Gameskraft spokesperson said, “Games of skill are a constitutionally protected activity as per Supreme Court and various high courts across the country. ” 
Gameskraft engaged in betting, says DGGI report
Rummy isone such game declared to be a skill game like horse racing, bridge and fantasy games. Therefore, the notice is a departure from the well-established law of the land,” the Gameskraft spokesperson said. 
The spokesperson further added, “As a responsible startup with unicorn status in the online skill gaming sector, we have discharged our GST and income tax liabilities as per standard industry practice, which is now over a decade old. We are confident that we will be able to respond to this notice to the full satisfaction of the authorities since they have sought to apply 28% tax applicable to games of chance and lottery, instead of the 18% applicable to online platforms of games of skill.” 
According to the DGGI report, Gameskraft engaged in betting by allowing its users to place real money bets on the outcome of games played online. The DGGI said its forensic examination revealed that the gaming firm failed to issue invoices to its customers and submitted false or overdue invoices in other instances. The law enforcement agency said users have no way of withdrawing their money once they top up their Gameskraft wallet.

 

 

 

 

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