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5th May Becomes D-Day For Indian Poker Companies

The Supreme Court has set 5th May, 2025, as the date for the final hearing in the high-profile Gameskraft tax evasion case.

The case stems from show-cause notices issued by the Directorate General of GST Intelligence (DGGI) to the online gaming firm.The broader financial impact, encompassing several gaming companies, is estimated at ₹2.5 lakh crore—making it one of the most significant tax disputes in Indian history.

The legal battle began in the wake of Rule 31A of the CGST Rules, which mandates a 28% GST on the face value of each bet. Gaming firms argue this rule should apply only to gambling and betting activities—not to skill-based games such as rummy, poker, and fantasy sports.

So, 5th of May could be the beginning of a watershed moment for the poker and real money gaming industry, and it remains to be seen what happens next.

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ALSO READ: “Karnataka To Be Gaming Capital of Asia” – Priyank Kharge at IGC 2024

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The GST component is dangling over the Indian real money gaming community since years now, and industry experts contend that the GST requirement was responsible for the shuttering down of several companies and even layoffs in some companies.

The issue has been longstanding, but the Indian gaming and real money industry has seen some positive developments over the years. To begin with,  Nazara Technologies acquired more than 40% in PokerBaazi, a popular Indian poker app. Also, some celebrities have also promoted real money gaming apps, including Shahid Kapoor, who is promoting the aforementioned app.

While there has been little discussion about real money gaming apps and portals, the Indian Government has been talking positively about where they see the country in the gaming world. To begin with, Prime Minister Narendra Modi had earlier said that he wants to see Indian software professionals at the forefront of the gaming eco-system.

The Karnataka Minister Priyank Kharge has also said that he wants Karnataka to become Capital of gaming in India. However, with the issues that RMG apps and sites are facing, it remains to be seen whether the Indian gaming market will remain as strong as it is currently. 

In this particular case, the gaming industry contends that the retrospective tax should be levied on apps that deal wiht gambling and betting. With poker and rummy considered ‘games of skill’ by the Courts in India, the conversation is only deepening.

Gutshot Magazine provides all the latest news and updates about the gaming and real money gaming industry. From information about poker tournaments itineraries to winners and interviews with them, we have it all. Keep reading us for all information about poker. 

 

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