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mygstrefund · 11 months
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Karnataka High Court Quashes Rs 21,000 Crore GST Notice Against Gameskraft
Introduction:
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In a significant development, the Karnataka High Court has quashed the Rs 21,000 crore GST notice against Gameskraft, a popular online gaming platform. The court held that the notice was issued without following proper procedures and that the amount claimed was unjustified. The ruling is a major relief for Gameskraft, which had been facing the threat of closure due to the hefty tax demand.
Background:
Gameskraft is a Bangalore-based online gaming platform that offers a range of skill-based games such as Rummy, Poker, and Chess. The company was founded in 2017 by Prithvi Singh and has since then gained a large user base. In 2020, the GST department issued a notice to Gameskraft, claiming that the company had evaded taxes worth Rs 21,000 crore by not paying GST on the rake collected from players. The notice also claimed that Gameskraft was liable to pay interest and penalties on the amount due.
The Court’s Decision:
Gameskraft challenged the notice in the Karnataka High Court, arguing that the amount claimed was arbitrary and without any basis. The court agreed with the company’s arguments and held that the GST department had not followed the proper procedures while issuing the notice. The court also observed that the amount claimed was unjustified and based on a flawed methodology. The court, therefore, quashed the notice and held that Gameskraft was not liable to pay the claimed amount.
Implications:
The court’s decision is a significant relief for Gameskraft, which had been facing the threat of closure due to the hefty tax demand. The ruling also sends a strong message to the GST department, emphasizing the importance of following proper procedures while issuing notices. The decision is likely to have far-reaching implications for the online gaming industry, which has been grappling with multiple tax-related issues.
Conclusion:
The Karnataka High Court’s decision to quash the Rs 21,000 crore GST notice against Gameskraft is a welcome relief for the company and the online gaming industry as a whole. The ruling reinforces the importance of following proper procedures while issuing notices and provides clarity on the taxation of online gaming platforms. The decision is likely to have a positive impact on the growth of the online gaming industry in India and will encourage more players to invest in the sector.
To Read the Detailed Article Click Here…
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gamixlabs · 11 months
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Did you know about the recent groundbreaking ruling by the Karnataka High Court regarding Rummy?
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Karnataka High Court has declared that Rummy is not gambling, regardless of whether it is played with stakes or without! Isn't that absolutely fascinating? The ruling came after the court quashed a show-cause notice issued to the online gaming platform Gameskraft by GST authority.
This ruling highlights the fact that Rummy is primarily a game of skill and decision-making rather than pure chance. Such a ruling could have far-reaching implications for the classification of similar card games.
What do you think about this ruling, and how will it improve Casino gaming experience in India?
Share your opinions with us in the comments below!
#rummydevelopment #gamixlabs #gamedevelopment #gameskraft #HCruling #GST
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dfoxmarketing · 5 months
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Online Gaming Companies Receive GST Notices worth Rs 1 Lakh Crore
This most recent development highlights the growing scrutiny and tax-related difficulties that Indian online gambling enterprises must deal with.
The Karnataka High Court’s Single Judge’s ruling, which had declared Gameskraft’s 21,000 crore rupee GST demand void, has been suspended by the Supreme Court.
Also Read: Reliance Jio Collaborates with Plume to Provide AI-Enhanced In-Home Services
According to reports, this move is anticipated to result in the issue of Show Cause Notices (SCN) to around forty additional online gambling organisations. Actually, this is happening right now.
Follow Digital Fox Media for latest business news.
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newsaaq · 7 months
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FoxMandal is a leading law firm with Pan India presence, with offices in Delhi, Bangalore, Ahmedabad, Pune, Mumbai, Hyderabad, Kolkata and Chennai.
Legal Services in India
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legalupanishad · 8 months
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Govt Hits Jackpot With 28% GST On Online Gaming in India
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This article on 'Govt Hits Jackpot With 28% GST On Online Gaming in India' was written by Anukriti Prakash an intern at Legal Upanishad.
INTRODUCTION 
In recent years, the online gaming sector has grown rapidly, becoming a dominant force in the digital environment. The Goods and Services Tax (GST) has emerged as a critical component as governments strive to regulate this rapidly emerging industry and fulfill its economic potential. The GST, a consumption-based tax on the sale of goods and services, applies to online gaming services. This article gives an essential overview of how India approaches taxing the online gaming business and customers, as well as the issues governments deal with when developing successful taxation structures. Join us on our quest as we investigate the complexities of GST and its influence on the dynamic and ever-changing world of online gaming.
UNDERSTANDING THE GST ON ONLINE GAMING IN INDIA
Online gaming services are classified as "Online Information and Database Access or Retrieval Services" under GST. The Goods and Services Tax (GST) is a value-added tax applied to revenue produced by Indian gaming companies. So far, only 18% GST has been levied on the platform fee, commonly known as the Gross Gaming Revenue (GGR) for skill games, but during its 50th meeting on July 11, the council resolved to impose a 28% GST on online gaming, horse racing, and casinos for consumers. For the companies, the GST rate is determined by the income earned by online gaming firms, which includes the sale of virtual objects, in-game money, and subscriptions. Online gaming corporations must register and comply with GST requirements, or else risk penalties and legal action. GST has had a tremendous influence on the Indian online gaming sector, both for businesses and customers.
RECENT NEWS
Finance Minister Nirmala Sitharaman announced on Tuesday that the GST Council has agreed to levy a 28% tax on the entire face value of online gambling, horse racing, and casinos. The panel, which was administered by the Union Finance Minister and included members from all states and union territories, agreed on the tax rate based on the recommendations of a committee of ministers who looked at taxing casinos, horse racing, and internet gambling. Section 3 of the GST Act will be amended to incorporate online gambling and horse racing as taxable actionable claims. The Centre is expected to present a GST amendment bill on August 11, 2023.
OUTLOOK OF INDUSTRIES EXECUTIVES
Although the industry is amenable to a 28% GST, experts said that taxing just deposits would not achieve the goal of increasing income in the market. The council might instead consider taxing net deposits, which are accumulative deposits. View of a few experts: In response to the government's decision to impose a 28% tax rate on the gaming industry, Aaditya Shah, Chief Operating Officer at the gaming app IndiaPlays, highlights the potential negative implications for gaming companies, particularly regarding their financial operations. The increased tax rate could lead to reduced profitability, increased costs for consumers, or adjustments to pricing strategies by gaming platforms. These challenges may affect the overall growth and sustainability of the gaming sector in India. A group of 45 gaming studios took another significant step by writing to the Prime Minister's Office, the Ministry of Electronics and Information Technology, and the Ministry of Information and Broadcasting. In their letter, they sought a clear distinction between video games and real-money gaming. This request highlights the crucial issue of distinguishing between different segments of the gaming industry.  The All-India Gaming Federation (AIGF), which represents prominent gaming companies such as Nazara, GamesKraft, Zupee, and Winzo, has expressed strong opposition to the decision by the council to impose a 28% tax rate on the gaming industry. According to the AIGF, the decision fails to recognize the distinction between online skill gaming and gambling activities, which has been established through over six decades of settled legal jurisprudence. By treating online skill gaming as equivalent to gambling, the industry faces an existential threat, putting the livelihoods of countless individuals at risk. AIGF CEO Roland Landers has voiced concerns that the decision could have severe consequences for the entire Indian gaming industry, leading to significant job losses. He also warns that this move might benefit illegal offshore gaming platforms at the expense of the legitimate Indian gaming industry.  Amrit Kiran Singh, Chief Strategy Advisor to the founders of Gameskraft, further emphasizes that the decision taken by the GST Council is not in the national interest. He asserts that it has the potential to dismantle a substantial portion of successful companies within India's startup ecosystem, which is a crucial pillar of the country's economic growth. According to Kumar Shukla, Secretary of the Esports Gaming Federation (EGF), the decision not only leads to loss of employment opportunities but also significantly impacts marquee investors who have heavily invested in this emerging sector. The adverse consequences of the tax rate could potentially affect the financial stability and growth prospects of successful gaming companies operating in India. The statements from industry representatives underscore the seriousness of the concerns raised by the gaming industry regarding the tax rate's impact. These concerns encompass not only the direct financial implications for companies and investors but also the potential negative effects on the overall entrepreneurial landscape and employment opportunities in the sector.
SUGGESTIONS
Policy Review: Policymakers should review the decision to impose a 28% GST on online gaming industry and consider alternative taxation models that promote growth without overburdening companies. Consultation with Industry: Engage in open and constructive dialogue with industry representatives, gaming companies, and investors to understand their concerns and find a balanced solution that protects their interests.
CONCLUSION 
The imposition of a 28% GST on online gaming industry in India has evoked significant concerns from stakeholders, including industry representatives, executives, and investors. The decision is viewed as potentially detrimental to the sector's growth, impacting companies' financial viability, and leading to job losses. Stakeholders stress the need for a clear differentiation between video games and real-money gaming to prevent misclassification and unjust taxation. Representatives from the gaming industry argue for a balanced approach that recognizes the sector's uniqueness while encouraging innovation. Policymakers should engage in open communication with the gaming industry to build a long-term taxation structure that promotes growth, protects job opportunities, and contributes to the overall development of India's gaming ecosystem.
References:
Lavpreet Kaur, ‘GST Council may clarify definitions, actionable claims on online gaming’, Deccan Herald, available at: https://www.deccanherald.com/business/business-news/gst-council-may-clarify-definitions-actionable-claims-on-online-gaming-1242314.html (Last visited: 01 August 2023).  ‘Implementation of 28% GST rate will bring challenges to online gaming industry’, Livemint, available at: https://www.livemint.com/economy/implementation-of-28-gst-rate-will-bring-challenges-to-online-gaming-industry-11689091580915.html (Last visited: 01 August 2023). Read the full article
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Rummy Tradition, Gamezy agency Gameskraft will get Rs 21,000 cr tax discover from GST | Corporations Information
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insperonjournal · 1 year
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thinkwinwincom · 1 year
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¿El Consejo GST decidirá sobre los juegos?
¿El Consejo GST decidirá sobre los juegos?
Oscar Wilde dijo una vez: “Uno siempre debe jugar limpio cuando tiene las cartas ganadoras”. Gameskraft Technology, una compañía de juegos con sede en Bangalore, dijo que jugó limpio cuando se trataba de pagar sus obligaciones de GST. Esto fue en respuesta a un aviso que recibió del Director General de Inteligencia Fiscal de Bienes y Servicios (DGGI) exigiendo un GST de Rs 21,000 millones de…
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new-haryanvi-ragni · 2 years
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Rummy Culture, Gamezy firm Gameskraft gets Rs 21,000 cr tax notice from GST
Rummy Culture, Gamezy firm Gameskraft gets Rs 21,000 cr tax notice from GST
The DGGI has now asked Gameskraft to pay GST at 28% on a betting amount totalling Rs 77,000 crore between 2017 and June 30, 2022.  source https://zeenews.india.com/companies/rummy-culture-gamezy-firm-gameskraft-gets-rs-21000-cr-tax-notice-from-gst-2514738.html
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Gaming co gets record Rs 21,000 crore GST notice - Times of India
Gaming co gets record Rs 21,000 crore GST notice – Times of India
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 was started in 2017 by a group of gamers. It…
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doonitedin · 3 years
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Kerala High Court strikes down ban on online Rummy
Kerala accounts for 5-7% of the total Rummy segment in India. After Madras HC, it’s Kerala’s turn. Kerala High Court on Monday struck down the amendment to a government notification issued under Section 14A of the Kerala Gaming Act, 1960 aiming to ban online rummy in the state. The petition in Kerala HC was filed by four gaming companies — Junglee Games India Pvt. Ltd, Play Games 24×7 Pvt. Ltd,…
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mygstrefund · 11 months
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The Karnataka HC has quashed a show cause notice issued by the DGGI to Gameskraft Technologies, a Bengaluru-based online gaming platform.
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gamixlabs · 11 months
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How will the Karnataka HC's verdict on Gameskraft's GST evasion of Rs 22,000 crore affect India's gaming industry?
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If the court finds Gameskraft guilty of GST evasion, it would surely influenced Indian gaming industries, and make hurdle for game producers as well as game makers. In result, it could lead to stricter regulations and scrutiny of the industry, potentially affecting the growth and development of the gaming sector in the country.
Tomorrow, May 11 at 2.30 pm, Justice SR Krishna Kumar of the Karnataka High Court's single judge bench will announce the verdict in the Gameskraft GST evasion case worth Rs. 22,000 crore, which has been highly anticipated.
Comment your thoughts about Gamekraft's case!
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ciolookindia · 3 years
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The third edition of the Indian Rummy League (IRL), a premier rummy tournament conceptualized & hosted by India’s fastest-growing online rummy platform, Rummy Culture, from the house of ‘Gameskraft’, is being held from 9th April to 30th May 2021.
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earpanel · 5 years
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Gameskraft awards media duties to DCMN India
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Online gaming company Gamskraft  has appointed DCMN India to handle the media duties for its flagship product Rummyculture. Gameskraft-owned Rummyculture was started in 2017 and in the last two years, it has emerged as India’s fastest-growing online rummy platform, providing best-in-class gaming experience to its users. The platform boasts of a diverse community of rummy players in India. Since its launch, more th an one million Rummy players have played on the platform and the community is growing rapidly. The brand aims to give every player a premium and hassle-free rummy-playing experience. DCMN India bagged the business following a multi-agency pitch and the account will be serviced from its Gurugram office. The mandate includes managing the brand’s TV media duties across different markets and campaign tracking using DCMN’s proprietary TV attribution technology, DC Analytics. The account will be led by Bindu Balakrishnan, Country Head, DCMN India. The debut television campaign of Rummyculture is running across channels in multiple languages. The brand is further amplifying the reach with digital media. The Rummyculture TVC Prithvi Singh, Founder & CTO, Gameskraft, said, "We began our journey with Rummyculture in late 2017, and it has emerged as one of India’s most-played rummy games within a short period of time. With over one million registered users on its website and Android/iOS applications, Rummyculture has certainly struck a chord with gaming enthusiasts across the country. The launch of our first TVC at this exciting time is an effort to strengthen our position in the market. The TVC rightly reflects our brand persona of being a fun and engaging platform for Rummy enthusiasts. We are happy to be associated with DCMN India as our media partners. Their KPI-driven approach towards media planning as well in line with our marketing needs. They understood the requirements of the brand and executed a seamless campaign."
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Bindu Balakrishnan says, “DCMN India is very happy to launch Rummyculture (Gameskraft) on TV. The online gaming industry has seen enormous growth in India in the past couple of years, and we are excited to be part of that growth. "DCMN India will be driving the brand awareness for Rummyculture and simultaneously tracking the campaign at a spot level to measure its brand performance and continuously optimize for ROI. Rummyculture has already established itself as one of the most loved rummy games in India and we are sure that this campaign will further cement their position in the market,” Balakrishnan said. Read the full article
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moneycafe · 3 years
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Mailmodo Funding: Interactive email marketing software, Mailmodo, raises $270K from Titan Capital, others
Mailmodo Funding: Interactive email marketing software, Mailmodo, raises $270K from Titan Capital, others
Mailmodo, an interactive email marketing software for businesses hasraised $270K in the pre-seed round funding by Titan Capital, Firstcheque, Gameskraft, Angellist and other marquee groups of investors including Archit Gupta, Deepak Diwakar, Harsh Shah and others. Mailmodo helps businesses create interactive app-like emails to get a better return on investment from email marketing. The…
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