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Karnataka High Court: The Karnataka High Court has held in a recent judgment that the card game of Rummy is not gambling. High Court Justice SR Krishna Kumar said that whether money is invested in the game or not, rummy is a game of skill, not chance.
It was decided by the High Court that rummy is gambling with or without stakes. The High Court observed that there is no difference between offline and online rummy and both are largely games of skill and not chance.
21 Big decision on thousand crore notice
The Karnataka High Court said this on the 21 thousand crore notice issued by the Directorate General of Goods and Services Tax Intelligence to online gaming platform Gamescraft. The High Court ordered the company to pay Rs. 21,000 crore tax notice was issued despite the show cause notice.
The judge also held that other online games that are games of skill and not chance are also not gambling.
What is the matter? ,
The GST authorities issued an information notice to Gamescraft on 8 September 2022 demanding Rs 21,000 crore. This notice was challenged in the High Court. Gamecraft argued that games of skill played for money at stake did not constitute betting and were games of skill.
However, the Karnataka High Court held that games played on gaming platforms are not taxable under betting and gambling. As prescribed under CGST Rules. In the 325-page judgement, Justice Kumar also noted that the betting and gambling provisions in the CGST Act do not and cannot cover games of skill.
