Giving a huge relief for companies offering online games of skills, the High Court of Karnataka has ruled that online/electronic/digital game of rummy and other online/electronic/digital game of skills are not taxable as ‘betting’ and ‘gambling’ under the Central Goods and Services (GST) Act.
“The expressions, ‘betting’ and ‘gambling’ having become nomen juris, the same are applicable for the purpose of GST also and consequently, the said words, ‘betting’ and ‘gambling’ contained in Entry 6 of Schedule III to the CGST Act are not applicable to online/electronic/digital Rummy, whether played with stakes or without stakes as well as to any other online/electronic/digital games which are also substantially and preponderantly games of skill,” the Court said.
Justice S.R. Krishna Kumar made these observations in his judgement on a petition filed by Bengaluru-based Gameskart Technologies Pvt Ltd, an online gaming platform company.
