The bigger worry, according to the report, would be if income-tax authorities raise demand for the shortfall in tax payment for the prior period, along with penalties
Previously, online gaming companies paid 18 percent tax on the platform fees because the law was ambiguous, while betting and gambling always fell under the 28 percent slab.
The forthcoming 28 percent GST tax regime, combined with potential retrospective taxation dues, will make the overall operations unfeasible, likely leading many companies to wind down their businesses, executives say.
The former BharatPe founder questioned the thought process of people running the tax department and said that their goal is just to ''harass businessmen.''