Online Gaming Companies Served GST Show-Cause Notices Worth Rs 1 Lakh Crore: Official

This comes even as the Sikkim High court stayed a GST demand notice on Delta Corp.

<div class="paragraphs"><p>(Source: Freepik)</p></div>
(Source: Freepik)

Online gaming companies have received show-cause notices worth an estimated Rs 1 lakh crore for Goods and Services Tax so far in September, according to a senior government official.

Online gaming companies have been the first among a slew of companies that have received show cause notices for GST shortfalls in the current year.

After the 52nd GST council meeting, the government clarified that the tax liability of 28% on online gaming is not retrospective but pre-existing. Gaming companies, however, insist that the rate of 28% is only applicable from Oct. 1.

The notices were issued now as the time period for issuing notices for FY18 was coming to an end, the official said on the condition of anonymity.

This comes even as the Sikkim High Court stayed a GST demand notice on Delta Corp., as per an exchange filing on Sunday. The Bombay High Court also provided interim relief on Rs 16,194 crore tax notices against the company.

Bombay HC Restricts Directorate General GST Intelligence In Delta Corp's Case