After a SC stay on a Karnataka HC order quashing the GST authorities’ tax evasion notice on Gameskraft Technology, a horde of show-cause notices is likely to follow, an official said. GTPL is among the 40-odd companies being investigated now for alleged tax evasion.
The Karnataka HC had quashed a GST notice for tax evasion worth Rs 21,000 crore against the online gaming company. With the SC staying that order, the Central Board of Indirect Taxes and Customs is likely to issue a demand notice, said sources.
In September 2022, a GST intelligence unit issued a show-cause notice to Gameskraft Technology alleging that the company failed to pay Rs 21,000 crore in GST, the biggest such claim in the history of indirect taxation.
At the hearing on Wednesday, Additional Solicitor General N Venkatraman said that they have approached the Supreme Court as the High Court has relied heavily on a judgment of a two judge bench of the same court.
The Supreme Court stayed the Karnataka High Courts judgment that overturned the Directorate General of GST Intelligences order imposing a Rs 21,000 crore goods and services tax demand on Bengaluru-based online gaming firm Gameskraft. Meanwhile, the bench led by Chief Justice DY Chandrachud also asked parties to file common compilations of judgments and other related documents.