The Karnataka High Court quashed Gameskraft’s 21 crore GST notice
Despite a judicial stay on a prior tax demand of 121,000 crore, the Karnataka High judicial on Thursday dismissed a show-cause notice sent by the Directorate General of GST Intelligence (DGGI) to online gaming company Gameskraft Technologies. On September 8 of last year, the GST officials issued the tax demand. The corporation appealed it to the court, which on September 23 suspended the demand notice.
noticing that there were several complex problems in the case.
After receiving a show-cause letter from the DGGI on the same day that the court temporarily stayed the tax demand notification, the firm reapplied to the court.
The firm claimed that the accusations made by the GST authorities in the show-cause notice were exactly the same as those in the prior tax demand intimation notification that had been halted in its case before Judge SR Krishna Kumar.
The petition also claimed that the GST Council had been preoccupied with the taxability of online gambling for the previous three years. According to the business, the whole case brought by the GST authorities was based on the “erroneous surmise that the activities carried out by Game-skraft were an actionable claim and not a service.” Joyjyoti Misra, general counsel for Gameskraft group, described the verdict as a “clear vindication” of the company’s business strategy.
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