Authorities are launching investigations into more than 100 online gaming firms for potential Goods and Service Tax (GST) evasion. This action follows the Supreme Court's decision to reverse a Rs. 21,000 crore GST demand from Gameskraft, an online gaming platform. The probe will specifically target companies involved in gaming activities with a monetary component.
Gameskraft had challenged the notice in the Karnataka High Court, where a single judge temporarily halted the GST department's notice on September 23, 2022, due to various issues in the case. However, the company later returned to the High Court, alleging that authorities had unfairly and deliberately issued a show-cause notice on the same day as the High Court's decision.
The investigation aims to address potential tax evasion by online gaming firms and ensure compliance with GST regulations. By scrutinizing these companies, authorities seek to identify any instances of wrongdoing and take necessary action to protect the integrity of the tax system.
(GST: Goods and Service Tax)
Source: Business Today