“Indian Government Issues ₹1 Lakh Crore Tax Notices to Online Gaming Companies Over Alleged Evasion”

The Indian government has taken a stern stance against multiple online gaming companies, serving show-cause notices totaling ₹1 lakh crore, accusing them of evading taxes, as reported by government sources to Reuters. Notably, there has been no confirmation regarding the registration of foreign gaming companies in India since October 1.

A government official shared that these show-cause notices were issued to online gaming companies for a combined amount of around ₹1 lakh crore. This development comes after it was revealed earlier this month that more than 100 online gaming applications operating in India had come under scrutiny by the Directorate General of Goods and Services Tax Intelligence (DGGI) for alleged tax evasion amounting to roughly ₹1 lakh crore.

Over the past month, several online gaming companies, including Dream11 and Gameskraft, have received show-cause notices for alleged short payments of taxes. In a separate incident last week, Delta Corp faced a Goods and Services Tax (GST) notice for underpaying taxes, with the total tax demand on the company exceeding ₹23,000 crore. Furthermore, GamesKraft received a show-cause notice in September last year for alleged GST evasion amounting to ₹21,000 crore.

The issue of GST on online gaming firms has been a subject of recent contention. In August, the finance ministry took the decision to impose a 28 percent GST on the full value of bets placed on online gaming platforms. This move is set to make it obligatory for offshore online gaming platforms to register in India and fulfill tax obligations in accordance with domestic law, as specified by the GST authority.

Sources By Agencies

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