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Rajasthan HC Scoffs At GST Authorities Going After Gaming Platform’s “Betting and Gambling” Activities

It held that fantasy games, and online gambling and betting, have been held as separate by courts, calling out the GST authorities’ actions to recover funds

The Rajasthan High Court has told Goods and Service Tax (GST) authorities to stop taking coercive action to recover GST from online gaming company MyTeam11 for alleged "gambling and betting activities", reported Gateway to Gaming. The platform offers games like rummy, poker, fantasy sports, and casual games (like cricket, Candy Crush, carrom, and solitaire). What the Rajasthan Court said: In their January 18th order, Chief Justice Pankaj Mithal and Justice Shubha Mehta noted that the Rajasthan High Court has already held that fantasy sports are not gambling games, but games of skill. An appeal to the verdict was dismissed by the Supreme Court too. Other games offered by the platform have also been held to be games of skill by courts. "When the matter is so settled by various Courts, the issuance of the impugned show cause notice is nothing but an abuse of the process of law," the order observed. The case has been admitted for final hearings—and the GST authorities now have a month to file a counter affidavit. About the case: The GST authorities were trying to recover funds from MyTeam11 under a show cause notice alleging that they were undertaking betting and gambling activities. "The impugned show cause notice in fact is not a mere show cause notice rather is in the nature of a final order determining the tax liability, interest and penalty and requiring the petitioner to deposit the same," observed MyTeam11 during the proceedings. This isn't a standalone case, as Gateway to Gaming notes. Gameskraft Technologies was issued a 21,000 crore show…

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