Online gaming firms issued 71 show cause notices over ₹1.12 lakh crore GST evasion: Finance Ministry | Mint
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Business News/ News / India/  Online gaming firms issued 71 show cause notices over 1.12 lakh crore GST evasion: Finance Ministry
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Online gaming firms issued 71 show cause notices over ₹1.12 lakh crore GST evasion: Finance Ministry

Tax authorities have issued 71 notices to online gaming companies for not paying GST of ₹1.12 lakh crore during FY23 and FY24.

The total tax evasion detected by central GST officers in the current fiscal (till October) is ₹1.51 lakh crore.Premium
The total tax evasion detected by central GST officers in the current fiscal (till October) is 1.51 lakh crore.

Online gaming companies have been issued 71 show cause notices for tax evasion in the last two financial years. The Finance Ministry said that online gaming organisations have been linked to GST evasion worth more than 1.12 lakh crore during FY23 and FY24. The total tax evasion detected by central GST officers in the current fiscal (till October) is 1.51 lakh crore.

“71 show cause notices involving GST to the tune of 1,12,332 cr have been issued to online gaming companies during financial years 2022-23 and 2023-24 (up to October 2023). As these notices are pending adjudication, the respective GST demand is not yet determined under the provisions of CGST Act, 2017," MoS Finance Pankaj Chaudhary said.

According to the Minister 154 people have been arrested in the current fiscal and 18,541 crore was recovered.

ALSO READ: Real money gaming firms risk huge revenue loss by FY28 on GST levy

Evasion to the tune of more than 1.31 lakh crore was detected and 190 persons were arrested during the 2022-23 fiscal. A total of 33,226 crore was recovered. GST evasion stood at 73,238 crore in 2021-22 and at 49,384 crore in 2020-21. The number stood at 40,853 crore in FY20.

The Indian government had decided to impose a 28% tax on online gaming companies (on full value of bets placed on such platforms.) in August. This in turn had led some companies — such as Mobile Premier League — to announce layoffs.

Several companies have since approached the High Courts to contest the claims put forth by revenue authorities. 

The government has also amended the GST law, making it mandatory for overseas online gaming companies to register in India from October 1. Chaudhary however said that no overseas online gaming companies have registered in the country since October 2023.

(With inputs from agencies)

 

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Published: 05 Dec 2023, 07:19 PM IST
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