Online gaming companies receive tax warnings worth Rs 1 trillion from the center.
Online gambling companies have received letters from Indian tax authorities worth over 1 trillion rupees ($12.03 billion), according to Reuters.
A top official stated on Wednesday that online gambling companies have already received show cause notices worth Rs 1 lakh crore from the GST authorities for tax evasion.
However, the official stated that since October 1, there has been no information of international gaming companies registering in India.
Due to changes made to the GST law by the government, foreign online gaming enterprises must register in India starting of October 1.
In August, the GST Council made it clear that the entire amount of bets made on internet gaming sites will be subject to a 28% Goods and Services Tax (GST).
According to the person, “GST authorities have served notices worth approximately Rs 1 lakh crore to online gaming companies thus far.”
Last month, a number of online gambling companies, like Dream11, and casino operators, such Delta Corp, received GST show cause warnings for allegedly underpaying taxes.
A separate show-cause notice for suspected Rs 21,000 crore in GST evasion was delivered to GamesKraft in September of last year.
Despite the company’s victory in the Karnataka High Court, the federal government filed a Special Leave Petition (SLP) with the Supreme Court in July.
