According to a senior official, GST authorities have taken action against online gaming companies, issuing show cause notices amounting to a staggering Rs 1 lakh crore in response to alleged tax evasion. This development comes in the wake of the recent amendment to GST law, which mandates foreign online gaming companies to register in India since October 1. Notably, there is currently no available data on foreign gaming companies complying with this requirement.
The GST Council clarified back in August that a 28 percent Goods and Services Tax (GST) would be imposed on the total value of bets made on online gaming platforms. The official shared, “Online gaming companies served notices worth about Rs 1 lakh crore by GST authorities so far.” Among the companies in the spotlight, both online gaming platforms like Dream11 and casino operators such as Delta Corp received GST show cause notices last month for alleged underpayment of taxes.
In a separate but related incident, a show cause notice was dispatched to GamesKraft in September the previous year, accusing them of GST evasion to the tune of Rs 21,000 crore. While the Karnataka High Court ruled in favor of the company, the central government filed a Special Leave Petition (SLP) in the Supreme Court in July, ensuring that the matter remains under legal scrutiny.
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