Alleged GST evasion by online gaming companies seen at nearly Rs 31,000 crore
Sep 21, 2023
Sources said that the authorities are in the process of sending show cause notices to around 80 online gaming companies suspected to be involved in this
The Directorate-General of Goods and Services Tax Intelligence (DGGI) has upped the quantum of alleged tax evasion by online gaming companies to nearly Rs 31,000 crore.
Official sources told BT TV that the authorities are in the process of sending show cause notices, adding that they suspect around 80 online gaming companies to be involved in this.
Previously, the government had alleged tax evasion to the tune of Rs 22,936 crore by gaming companies, including those involved in online gaming.
The Supreme Court recently intervened by staying a Karnataka High Court ruling that had overturned a Rs 21,000-crore GST demand on a Bengaluru-based online gaming company.
The central government body had appealed to the apex court following the GST Council's decision to levy 28 per cent tax on online gaming on the full face value.
The 51st GST Council meeting held in August decided to impose the tax on the full value of bets placed on online gaming, casinos, and horse racing.
The decision will take effect from October 1.