GST Authorities Issue Rs 1 Lakh Crore Show Cause Notices to Online Gaming Firms

25 Oct 2023 , 02:44 PM

GST authorities have issued show cause notices totaling Rs 1 lakh crore to online gaming companies for alleged tax evasion. An amendment to the GST law requires overseas online gaming firms to register in India from October 1, but no data on foreign registrations is available yet.

The GST Council clarified that a 28% GST rate applies to the full value of bets on online gaming platforms. Companies like Dream11 and Delta Corp received GST show cause notices for alleged tax shortfalls in the past month.

GamesKraft received a show cause notice in September last year for alleged GST evasion of Rs 21,000 crore; the case is pending in the Supreme Court after the Karnataka High Court ruled in favor of the company.

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