71 GST Notices of Rs. 1.12 Lakh Crore issued to Online Gaming Firms

During FY 2022-23 and 2023-24 (up to October 2023), 71 show cause notices involving GST to the tune of Rs.1,12,332 crore were issued to online gaming companies.

71 GST Notices of Rs. 1.12 Lakh Crore to Gaming Companies

Reetu | Dec 5, 2023 |

71 GST Notices of Rs. 1.12 Lakh Crore issued to Online Gaming Firms

71 GST Notices of Rs. 1.12 Lakh Crore issued to Online Gaming Firms

During the financial years 2022-23 and 2023-24 (up to October 2023), 71 show-cause notices involving GST (goods and services tax) to the tune of Rs. 1,12,332 crore were issued to online gaming companies.

The information provided by Minister of State for Finance Pankaj Chaudhary in a reply to a question raised in Rajya Sabha by Rajya Sabha MP Sushil Kumar Modi on tax evasion on tuesday.

“As these notices are pending adjudication, the respective GST demand is not yet determined under the provisions of CGST Act, 2017,” Chaudhary said in a statement.

“There have been no overseas online gaming companies registered in the country since October,” he added.

His remarks come in the wake of the October 1 implementation of a 28% GST on online gaming companies. According to the laws, foreign gaming companies that operate in India must register in order to pay GST.

The Directorate General of GST Investigation has also taken action against numerous businesses for nonpayment of past due taxes. Notices have been issued to companies such as Dream11 and Games24x7, and a case is currently pending before the Supreme Court about a Rs 21,000 crore GST notice issued to Gameskraft.

Meanwhile, tax officials discovered Rs 1.51 lakh crore in GST evasion between April and October 2023, recovered Rs 18,541.38 crore, and arrested 154 people in connection with the evasion.

Between FY20 and FY24 (till October 2023), tax officers identified Rs 4.46 lakh crore in GST evasion, of which Rs 1.07 lakh crore was collected and realized.

Meanwhile, in answer to another question, Finance Minister Nirmala Sitharaman stated that during the special campaign on fake registrations, a total of 21,791 companies with GST registration were determined to be non-existent, representing Rs 24,010 crore in suspected tax evasion.

This includes 11,392 firms under state tax jurisdiction with a total of Rs 8,805 crore in suspected tax evasion and 10,399 organizations under CBIC jurisdiction with a total of Rs 15,205 crore in suspected tax evasion.

StudyCafe Membership

Join StudyCafe Membership. For More details about Membership Click Join Membership Button
Join Membership

In case of any Doubt regarding Membership you can mail us at [email protected]

Join Studycafe's WhatsApp Group or Telegram Channel for Latest Updates on Government Job, Sarkari Naukri, Private Jobs, Income Tax, GST, Companies Act, Judgements and CA, CS, ICWA, and MUCH MORE!"