NEW DELHI, Oct 25 : Senior official reported that GST authorities have issued show cause notices totaling ₹1 lakh crore to online gaming companies for potential tax evasion.
However, the official also mentioned that there is currently no available data on foreign gaming companies registering in India since October 1. The government recently revised the GST law, mandating that overseas online gaming companies must register in India from that date onwards.
In August, the GST Council clarified that a 28% Goods and Services Tax (GST) would be applied to the entire value of bets made on online gaming platforms.
The official stated, “Online gaming companies have been served notices worth approximately ₹1 lakh crore by GST authorities thus far.”
Numerous online gaming companies, such as Dream11, and casino operators like Delta Corp, received GST show cause notices in the previous month for suspected underpayment of taxes.
In a separate case, GamesKraft was issued a show cause notice in September the previous year for alleged GST evasion amounting to ₹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.
