As many as 71 show cause notices have been issued to online gaming companies for alleged GST evasion of over Rs 1.12 lakh crore during financial years 2022-23 and 2023-24, the finance ministry said today.
“We dont want any company to claim later that they were not aware of the details of the recent amendments to the GST laws,” a senior official with the commercial taxes department told ET.
As opposed to the DGGI calculation, the prospective taxation method suggested by the GST Council in August on "deposits" would lead to tax liability increasing by about 400% on a yearly basis, the executives added.
Online gaming companies on Tuesday said that levying of 28 per cent GST will limit their ability to invest in new games, impact cash flows as well as business expansion.