Gamescraft was also accused of promoting online betting, but the company argued that its offerings qualified as skill-based gaming activities. (Image: News18/File)
Gamescraft, an online skill-based gaming platform that started operations in 2017, hailed the HC’s decision and said it was a clear endorsement of the company’s business model.
The Karnataka High Court on Thursday quashed a Rs 21,000 crore GST notice against online gaming company Gamescraft Technologies. The notice was issued by the Directorate General of GST Intelligence in September 2022 after the company allegedly failed to pay taxes to the tune of Rs 21,000 crore, believed to be the largest amount deposited in the history of indirect taxation.
Gamescraft was also accused of promoting online betting, but the company argued that its offerings qualified as skill-based gaming activities including Rummy Culture and Gamezee. The company’s leadership team has members who have played key roles in Indian tech giants such as Flipkart, MakeMyTrip and Swiggy, and global giants such as Facebook, Google, Amazon, Walmart and Xiaomi.
The Bengaluru-based online skill-based gaming platform, which started operations in 2017, hailed the HC’s decision and said it was a clear indication of the company’s business model. “We had and will have full faith in the government and the judiciary. We are hopeful that this decision will pave the way for a constructive dialogue with the GST authorities and form the basis for progressive GST rules for the industry,” said Joyjyoti Mishra, Group General Counsel, Gamecraft.
Roland Lander, CEO of the All India Gaming Federation, also expressed satisfaction over the decision and called it a “historic decision”. He added that the decision will help gaming startups across the country work towards building the industry to ensure healthy growth.
“Being the oldest and largest industry body, and the voice of MSME gaming startups, and being one of the intervenors in the matter, we believe that a progressive and rational GST policy will encourage investment within the sector And this sunrise will make the industry the foundation stone of the region. Lander said, for the PM’s (Narendra Modi) vision of a $1-trillion digital economy.
He added: “We had and continue to have full faith in the government and the judiciary and hope that this progressive decision will pave the way for clarity and certainty from the GST Council in policy for this emerging sector.”
