Online Gaming Firms get Rs 1 Trillion GST Notices for Evading Taxes

No foreign gaming companies have registered in India since October 1, according to an official source. Senior official reveals that GST-authorities have sent Rs 1 lakh crore worth of show cause notices to online-gaming-companies for tax evasion.

Online gaming firms have received show cause notices amounting to Rs 1 lakh crore from GST authorities due to alleged tax evasion, as per the senior official’s statement.

The official, however, said that there is no data yet of foreign gaming companies registering in India since October 1.

The government has amended the GST-law, making it mandatory for overseas online-gaming companies to register in India from October 1.

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In August, the GST Council clarified that it would levy a 28% Goods and Services Tax (GST) on the full value of bets placed on online gaming platforms.

“Online gaming companies served notices worth about Rs 1 lakh crore by GST authorities so far,” the official said.

A host of online gaming, like Dream11, and casino operator, like Delta Corp, have received GST show cause notices last month for alleged short payment of taxes.

Separately, a show cause notice was sent to GamesKraft in September last year for alleged GST evasion of Rs 21,000 crore.

While the Karnataka-High-Court has ruled in favour of the company,the central government in July filed a Special-Leave-Petition(SLP) in the Supreme-Court.

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