- About 80 online gaming companies in India are likely to face tax notices for alleged GST evasion of ₹10,000-12,000 crore.
- The investigation wing of the Directorate General of GST Intelligence (DGGI) is issuing notices to gamers operating in India and abroad, with total evasion estimated to be over ₹31,000 crore.
- These gaming firms allegedly evaded paying the 28% GST rate on their gross gaming revenue.
- Notices have been issued for a tax demand of ₹22,000 crore, including ₹21,000 crore on Bengaluru-based online gaming company Gameskraft Technology.
- The Karnataka High Court quashed the notice on Gameskraft, but the revenue department challenged the decision.
- The Supreme Court has stayed the High Court ruling and will hear the matter later this month or early next month.
- The DGGI is also cracking down on casino operators for alleged non-payment of tax.
- Delta Corp received a tax notice for ₹11,139 crore for allegedly not paying GST on the gross bet value.
- The new rule clarifies that tax will be imposed on the money paid by users to online games, regardless of whether they are games of skill or chance.
- A comprehensive review will be done six months after the implementation of the new rule.
Source: a2ztaxcorp.com
