In recent months, 71 companies received show-cause notices demanding taxes totaling Rs 1.12 lakh crore, with some demands surpassing their annual turnover
The GST department has also undertaken to file a transfer petition seeking transfer of all cases pertaining to the same issue of law from various high courts to the Supreme Court
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.
The skill-based gaming industry, which will now pay higher GST, will be further hit if the Supreme Court ruling is unfavourable, making them pay retrospective GST liabilities.
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.