GST Intel raids RummyCulture, laptops and hard drives seized

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In a series of raids in Bengaluru, the GST Intel team found tax evasion by GamesKraft Technologies, the company that operates RummyCulture, reported IndiaAheadNews. Several laptops and hard drives have been seized. Media reports suggested that the top management and promoters are currently on run. The company was founded in the year 2017 and operates skill games under the brands Gamezy and RummyCulture. We have reached out to GamesKraft for their comments.

GamesKraft is one of the petitioners challenging the recent game ban laws by the Tamil Nadu, Karnataka, and Kerala governments before the respective High Courts. Recently, the gaming company bought 5 apartments with an aggregate built-up area of 6,950 sq. ft in Bengaluru for nearly Rs 32 crore in the project Savyasachi Sarayu.

The valuation of supplies in the casino and gaming industry has been a contentious issue ever since the introduction of GST in 2017. In many instances, the casino operators are compelled to pay 28% GST on entire bet amounts while commission or processing charges are the only amounts they are finally entitled to. Similarly, skill games are charged at 18% GST.

Recently, the Punjab and Haryana High Court bench comprising of Justice Ajay Tewari and Justice Alka Sarin had directed the GST department to not take any coercive action against an online gaming operator Witzeal Technologies Private Limited till an empowered Group of Ministers (GoM) set up to look into online gaming, casinos and lotteries submit its report. Subsequently, the GST Secretariat had asked the GST Council to clarify the GST rate and the applicability of the levy on these reported services.