GST: Government's crackdown on online gaming companies! Claiming to have sent a notice of one lakh crore rupees

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New Delhi, 25th October-2023, Wednesday

The government has started crackdown on online gaming companies in the country. GST officials have so far sent notices worth Rs 1 lakh crore to companies, sources claimed. However, an official said that there is currently no data available on foreign gaming companies registering in India after October 1.

Registration of foreign online gaming companies in India is mandatory

The government amended the GST Act on October 1, in which the GST Council has made registration of foreign online gaming companies in India mandatory. The GST Council had made a clear decision in August that 28 per cent Goods and Services Tax (GST) would be levied on the amount charged for playing games on online gaming platforms.

Some companies were also issued notices last month

The official said that the GST officials have so far issued notices worth Rs 1 lakh crore to online gaming companies. GST officials last month issued show cause notices to online gaming companies like Dream11 and KCs like Delta Corp for underpayment. In September last year, a show cause notice was also sent to Gamescraft in connection with the alleged GST evasion of Rs 21,000 crore.

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