Rummy Played with Or without Stakes Is Not Gambling: Karnataka HC
The Karnataka High Court recently ruled that rummy whether played with stakes or without stakes is not gambling. In the 325-page judgement, Justice Kumar observed that there is a distinct difference between games of skill and games of chance; games such as rummy, etc, as discussed in several decisions including the decision of this the high court in All India Gaming Federation’s case, whether played online or physical, with or without stakes would be games of skill and test of predominance would apply. “Though Section 2 of the CGST Act recognises even wagering contracts as included in the term business, but that in itself would not mean that lottery, betting and gambling are the same as games of skill,” held the court. In view of this, the court held that Entry 6 in Schedule III to the CGST Act taking actionable claims out of the purview of supply of goods or services would clearly apply to games of skill and only games of chance such as lottery, betting, and gambling would be taxable.
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