GST authorities have issued show cause notices totaling Rs 1 lakh crore to online gaming companies for potential tax evasion, as confirmed by a senior official on Wednesday. It’s worth noting, however, that as of now, there is no available data on foreign gaming companies registering in India since October 1. The Indian government recently modified the GST law to require overseas online gaming firms to register in India from the beginning of October. In August, the GST Council clarified that a 28% Goods and Services Tax (GST) would be imposed on the full value of bets placed on online gaming platforms. Notably, several online gaming platforms, including Dream11, and casino operators like Delta Corp, received GST show cause notices last month for alleged underpayment of taxes. Additionally, a show cause notice was issued to GamesKraft in September of the previous year for alleged GST evasion amounting to Rs 21,000 crore. While the Karnataka High Court ruled in favor of GamesKraft, the central government filed a Special Leave Petition (SLP) in the Supreme Court in July.
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