21,000 crores made on Gameskraft was quashed by the Karnataka High Court. These arguments made by the GST department, however, did not find favour with the Courts and the demand of Rs. The department argued that the age-old distinction of games of skill and games of chance hold no significance and if played for monetary stakes, amount to “betting and gambling” under the law.
before the recent amendment), the GST department had tried to classify online skill gaming platforms (such as Gameskraft, My Team 11 etc.) as “betting and gambling” under the extant GST laws and had issued demand notices applying 28% on the entire face value of amounts placed.
