Punjab & Haryana HC orders to Defreeze 50% attached amount of Online Betting App with regard to Rs. 1500 crores GST Notice [Read Order]

The Punjab and Haryana High Court (HC) directed the authorities to defreeze the 50% of the attached amount of the online betting app to carry out their day to day activities. The bench of Justice Ritu Bahri and Justice Ritu Batra also ordered not to take any coercive steps against the petitioner company.

The petitioner M/s Probo Technologies Pvt Ltd, an online betting company and has an application, received a Goods and Services Tax (GST) notice of Rs. 1500 crores for evading tax. The Haryana’s excise and taxation department issued the notice against the company.

Read More: Excise and Taxation Dept of Haryana Issues SCN to Online Betting Company for Rs. 1500 crores Tax Evasion

The Counsel of the petitioner referred the judgment of the passed by this Court of Witzeal

Technologies Pvt Ltd. vs. Union of India and Ors., regarding the GST, where on a statement given by the State counsel, the matter was disposed of keeping in view the assurance that the empowered Group of Ministers was investigating the matter and they would take necessary steps only when clarification comes.

Further stated that till date no clarification has been given by the Group of Ministers, who are examining this issue on the question whether the skill games which are being facilitated by the petitioner are to be charged as a game of chance at 28% on the entire bet value. Also stated that on platform fees, they have already paid 18% GST.

It was also asserted by the petitioner’s counsel that the 18% GST has been paid on the total-turnover of Rs. 8 crores in 2 years. The attachment was made of Rs. 97.95 crore approximately.

Considering the submissions of the counsels, the High Court stated that “no coercive steps will be taken for recovery of the amount demanded as per the show cause notice dated 19.05.2023 (Annexure P-1) and 50% of the attached amount should be defreezed so that the petitioner-company can carry out its day to day working.

Recently, the Karnataka High Court quashed the GST Notice of Rs. 21000 crores against the Gameskraft which had imposed Rs. 21,000 Crore at 28% GST on online gaming services provided to gamers.

Read More: GST on Online Gaming: Karnataka HC quashes SCN of Rs. 21000 Crores against Gameskraft

However, the decision of the Karnataka High Court is to be appealed before the Supreme Court by the Central Government soon.       

Read More: Central Govt to appeal SC against Karnataka HC Order quashing GST Notice of Rs. 21000 crores on Gamerskraft

To Read the full text of the Order CLICK HERE

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Witzeal Technologies Pvt.Ltd Vs Union Of India and Ors , 2023 TAXSCAN (HC) 946