Government is strict on online gaming companies, till now notice of Rs 1 lakh crore has been given
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The Center on Wednesday issued show cause notices worth ₹1 lakh crore to several online gaming companies for alleged tax evasion. This information has come to light quoting sources. However, the government official claimed that there is no data yet on registration of foreign gaming companies in India after October 1. Sources said the amount for which show cause notices have been issued to online gaming companies is around ₹1 lakh crore.
Earlier this month it was reported that over 100 online gaming applications operating in India are under investigation by the Directorate General of Goods and Services Tax Intelligence (DGGI) for alleged tax evasion of around ₹1 lakh crore. In the last month, several online gaming companies, including Dream11 and Gamescraft, have been issued show cause notices for alleged short payment of taxes. Last week, Delta Corp received a GST notice for short tax payment of ₹6,384 crore, taking the total tax demand on the company to over ₹23,000 crore. Separately, Gamescraft was sent a show cause notice in September last year for alleged GST evasion of ₹21,000 crore.
In August, the Finance Ministry decided to impose 28 per cent goods and services tax (GST) on the full value of bets placed on online gaming platforms. According to the GST authority, the amendment to the integrated GST will make it mandatory for offshore online gaming platforms to register in India and pay taxes as per domestic law. After the government introduced the new Tax Deducted at Source (TDS) system for online gaming and crypto business, it has collected tax of more than Rs 700 crore from them so far in the current financial year. Central Board of Direct Taxes (CBDT) Chairman Nitin Gupta gave this information on Friday.
Online gaming companies have been served notice of Rs 1 lakh crore by India GST authorities so far: Sources
— ANI (@ANI) October 25, 2023
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