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Karnataka High Court: With the rise in the use of smart phones in the age of the Internet, many jobs started to be done from home. Be it online shopping or ordering food online, everything is possible with a single button. Most of our time has started going on mobile. Children and adults have become addicted to mobile games easily available on mobile phones. However, the Karnataka High Court’s decision is surprising.
The Karnataka High Court has ruled in a case that playing a game played by a husband is not gambling. Justice SR Krishna Kumar has observed that rummy is a game of intellect, even if money is involved in the game. Rummy is not a game where money is used or not. The court argued that there is no difference between offline and online rummy, both games use skill.
The Directorate General of Goods and Services Tax has given 21 thousand crore rupees to online gaming platform Game Craft. A notice of Rs. In this matter, the company filed an application in the High Court. On which the High Court gave a stay notice. While giving the verdict, the court said that rummy is a game of intelligence.
What is the matter?
A notice was issued by the GST authorities on 8 September 2022 in the name of Gamescraft Company. In which 21 thousand crore rupees were demanded as tax. The Gamecraft company challenged this notice in the High Court. In the petition, the company claimed that although rummy involves betting money, it requires the use of intelligence, hence it cannot be a betting game.
The Karnataka High Court has observed that it is not appropriate to tax games played on online gaming platforms under betting and gambling. The court also noted that the terms of betting and gambling in the GST Act do not include games of skill in their ambit.
Online games are booming in India
Online gaming is very popular in India. Many people participate in playing card games or fantasy cricket. The middling ‘Pub-G’ game gave parents sleepless nights, while school children became addicted to the game. Indian mobile gaming revenue is projected to cross $1.5 billion by the end of 2022. According to experts in the field, this number may reach $5 billion by 2025.