Online gaming companies get Rs 1 lakh cr GST show cause notices so far

Online gaming companies have been served show-cause notices to the tune of Rs 1 lakh crore for tax evasion so far, according to a senior official. However, the official said that there is no data yet of foreign gaming companies registering in India since October 1, news agency PTI reported.

"Online gaming companies served notices worth about Rs 1 lakh crore by GST authorities so far," the report quoted the official as saying.

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

In August, the GST Council had clarified that 28 per cent Goods and Services Tax (GST) would be levied on full value of bets placed on online gaming platforms.

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.

A GST notice of over Rs 25,000 crore has been sent to fantasy sports platform Dream11, led by Harsh Jain, which makes it possibly the largest indirect tax notice served in the country, The Economic Times had reported earlier, citing people with knowledge of the matter.

Apart from Dream11, pre-show cause notices have also been served to Play Games 24x7 and its affiliates, and Head Digital Works, as per the report.

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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