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HomeIndiaGovt serves online gaming companies tax notices worth Rs 1 lakh crore

Govt serves online gaming companies tax notices worth Rs 1 lakh crore

Indian tax authorities have issued present trigger notices value about 1 trillion rupees ($12.03 billion) to on-line gaming corporations, a authorities official stated on Wednesday.

“The total amount of show-cause notices sent to online gaming companies is around Rs 1 lakh crore,” an official stated on October 25, requesting anonymity.

The federal government and on-line gaming are in a tussle over the cost of 28 per cent Items and Companies Tax (GST) as a substitute of 18 per cent for the interval as much as October 1, 2023. Whereas the web gaming companies really feel the 28 per cent tax is relevant solely beginning October 1, the federal government is of the opinion that the October 1 revision solely supplied readability to a legislation that was already in power.

The official, nonetheless, stated that there is no such thing as a knowledge but of overseas gaming corporations registering in India since October 1.

The federal government has amended the GST legislation, making it obligatory for abroad on-line gaming corporations to register in India from October 1.

The GST Council had in August clarified that 28 per cent Items and Companies Tax (GST) can be levied on the total worth of bets positioned on on-line gaming platforms.

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

A bunch of on-line gaming, like Dream11, and on line casino operators, like Delta Corp, obtained GST present trigger notices final month for alleged quick cost of taxes.

Individually, a present trigger discover was despatched to GamesKraft in September final yr for alleged GST evasion of Rs 21,000 crore.

Whereas the Karnataka Excessive Courtroom has dominated in favour of the corporate, the central authorities in July filed a Particular Depart Petition (SLP) within the Supreme Courtroom.

With inputs from businesses.

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