HomeLifestyleBiggest action ever on GST evasion, online gaming company gets ₹21,000 crore...

Biggest action ever on GST evasion, online gaming company gets ₹21,000 crore tax notice

New Delhi. The Directorate General of GST Intelligence (DGGI) has issued the biggest show cause notice in the history of indirect taxation so far. DGGI has sent a notice of tax dues of Rs 21,000 crore to Bengaluru-based online gaming company Gameskraft Technology Pvt Ltd.

Allegations of non-payment of GST
The company is accused of non-payment of GST of Rs 21,000 crore and this show cause notice has been given for the period 2017 to June 30, 2022. Gamescraft Technology Pvt Ltd is accused of promoting online betting through card, casual and fantasy games like Rummy Culture, Gamezy, Rummy Time. DGGI has levied 28 per cent tax on betting money amounting to Rs 77,000 crore.

Also read- 30% increase in direct tax collection, ₹ 8.36 lakh crore in the exchequer

The company connects with betting by putting money at stake
According to a DGGI report, Gamescraft Technology Pvt Ltd engages its players in betting by placing money and allowing them to bet on the results of card games played online. During investigation, DGGI found that Gamescraft was not issuing any invoices to its customers and submitted fake/back dated invoices. This was revealed in the forensic investigation. DGGI said the company was encouraging its customers to place bets as there was no way to withdraw the money once it was in the wallet.

The company gave this clarification
A Gamescraft spokesperson said, “Skill games are constitutionally protected activities through the country’s Supreme Court and various High Courts. Rummy is one such announced game on the side of horse racing, bridge and fantasy games. Thus, this notice is contrary to the established law of the land.”

Tags:, GST, Tax



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