Gaming companies argue that argue that such an interpretation would be detrimental to the sector, as the tax amount in question far exceeds its overall revenues. The crux of all these matters lie in the interpretation of the revenue department, which contends that the online rummy platform’s activities amount to ‘gambling and betting’ under GST laws due to the option to place stakes on skill-based games. Currently, petitions challenging the GST notices are pending with the High Courts of Bombay, Sikkim, Gujarat, and Uttar Pradesh.Īs per reports, the tax department intends to seek transfer of all pending High Court cases to the Supreme Court, which will conclusively decide the issue of retrospective taxation and whether online skill-based games amount to gambling and betting. Subsequently, several gaming companies across the country and casino operators in Goa and Sikkim were issued notices for the recovery of tax based on the full face value of their operations.Īggreived by the notices, gaming companies have approached various High Courts. In the previous hearing, the DGGI successfully obtained a stay against the Karnataka High Court’s decision to quash the notice. It has been customary to discuss the skill level in games by using a chance-skill scale, where games of pure chance, like craps and roulette, are at one end games of skill, like golf and bowling, are at the other end and games with both chance and skill, like blackjack and poker, are in the middle (when golf.
