Government says notice of Rs 1 lakh crore sent to online gaming companies

India's GST authorities have so far sent notices worth Rs 1 lakh crore to online gaming companies.

By amending the GST law, the government has made it mandatory for foreign online gaming companies to register in India from October 1. The GST Council had clarified in August that 28 percent Goods and Services Tax (GST) would be levied on the entire value of bets placed on online gaming platforms.

"GST officials have so far given notices worth around Rs 1 lakh crore to online gaming companies," the official said. Online gaming and casino operators like Dream11 and Delta Corp have received show cause notices from GST officials last month for alleged short payment of taxes.

In September last year, a show cause notice was also sent to Gamescraft for alleged GST evasion of Rs 21,000 crore.

GST officials have so far issued show cause notices worth Rs 1 lakh crore to online gaming companies in tax evasion cases. A senior official gave this information on Wednesday, October 25.

However, the official said that no data is yet available on foreign gaming companies registered in India after October 1.

Several online gaming platforms like DRI-11 and casino operators like Delta Corp have received show cause notices for alleged non-full payment of taxes.

Gaming platform Gamescraft was sent a show cause notice in September last year for alleged GST evasion of Rs 21,000 crore.

The Karnataka High Court had ruled in favor of the company. However, the central government filed a special leave petition (SLP) in the Supreme Court in July against the decision.