Whether Fantasy Gaming Fall Within Actionable Claim Amounting To Betting And Gambling Or Based On Skills: Gujarat High Court Stays GST SCN, Issues Notice

The Gujarat High Court will decide on the issue of whether fantasy gaming falls within an actionable claim amounting to betting and gambling or based on skills.

The bench of Justice Biren Vaishnav and Justice Mauna M. Bhatt has issued notice to the GST department and restrained the GST department from taking any further steps on the adjudication of the show cause notice.

The petitioner/assessee, NXGN Sports Interactive, submitted that the activity of the online claim that the petitioners undertake would be an actionable claim other than lottery, betting, and gambling.

The petitioner challenged the show cause notice issued by the GST department. The petitioner raised the issue of whether the petitioners’ platform, which is used for gaming, would fall within an actionable claim amounting to betting and gambling.

As per Section 2(52) of the GST Act read with Section 7, particularly Schedule (III), activities or transactions shall be treated neither as a supply of goods nor a supply of services. Actionable claims, other than lottery, betting, and gambling

The petitioner contended that it is not an actionable claim that is sought to be conveyed in the show cause notice.

The court has issued a notice returnable on January 17, 2024.

“Pending the petition, there shall be ad-interim relief inasmuch as the respondents are restrained from taking any further steps on the adjudication of the show cause notice. It shall, however, be open to the petitioner to file a response to the show cause notice,” the court said.

Counsel For Petitioner: Mihir Joshi

Counsel For Respondent: Tushar Hemani

Case Title: NXGN Sports Interactive Private Limited Versus Union Of India

LL Citation: 2023 LiveLaw (Guj) 179

Case No.: R/Special Civil Application No. 19183 Of 2023

Click Here To Read The Order