Karnataka HC quashes GST notice against online gaming company

The Karnataka High Court on Thursday quashed the showcause notice against Bengaluru-based online gaming platform Gameskraft Technologies Private Limited (GTPL) over a Rs 21,000-crore Goods and Services Tax overdue.

Justice S R Krishna Kumar quashed the demand notice issued by GST authorities in September 2022.

Challenging the notice, GTPL submitted that it is not involved in the supply of ‘actionable claims’ as alleged by the Director General of GST Intelligence (DGGSTI). It was claimed that its business model and the contractual arrangements would depict that it can never be involved in the supply of ‘actionable claim’ since it has no right or lien over the pooled money from players.