The
Supreme Court (SC) on Wednesday quashed Karnataka High Court's order that
quashed the Rs 20,989-crore show-cause notice against Bengaluru-based online
gaming company Gameskraft Technologies (Gameskraft) for alleged goods and
services tax (GST) evasion.
The
apex court said that there is much in the HC order that needs consideration.
The
high court had quashed the Directorate General of GST Intelligence's order in
May this year.
The
authorities had issued the notice in September last year. It alleged that
GamesKraft escaped goods and services tax (GST) payment to the tune of Rs
21,000 crore between 2017 and June 30, 2022.
It added
that Gameskraft allowed its clients to place money bets on online games, saying
the company was promoting online betting through card, casual, and fantasy
games like Rummyculture, Gamezy, and Rummytime.
Authorities
had, therefore, slapped a 28 per cent tax — which is applicable on games of
chance/betting and gambling — on the firm on a betting amount of about Rs
77,000 crore.
Officials
said Gameskraft was pushing customers to continue betting because there was no
way of going back once the money was added to their wallet.
Later
in June, the revenue department decided to move the SC against the HC order.
"The
legal team has studied the high court's order to decide the possible course of
action. The department is quite clear that the notice followed a thorough
investigation. So the department will be soon moving a petition in the apex
court against the high court order," a government official privy to the
discussion had then.
On
Wednesday, the apex court also directed Gameskraft to file a response to the
plea filed by the Centre. The Centre's plea will be heard in three weeks.