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Nazara Technologies Faces A Tax Demand Notice Of ₹2.83 Crore 

As per the latest news reports, gaming giant Nazara Technologies has received a tax demand notice from the Director General of GST Intelligence (DGGI). This tax demand notice also includes an interest under section 50 of CGST and a penalty. 

The news reports state that the tax demand notice was sent in relation to the export of services which falls under the Letter of Undertaking (LUT) without the realisation of the export proceeds.

The latest tax demand from Nazara Technologies has been made under section 74 (1) of the Central Goods and Services Tax (CGST) Act, 2017, and the Maharashtra Goods and Services Tax Act 2017.

On 28th September, shares of Nazara Technologies closed 1.51% lower on the Bombay Stock Exchange (BSE) and stood at ₹827.25.

Nazara Technologies is not the only gaming brand under the tax scanner. Previously, we had reported how DGGI  has over 80 online gaming companies on its list for GST evasion. 

This list includes Dream11 which was slapped with a tax notice of ₹40,000 Crore. The gaming brand has challenged this tax notice in the Bombay High Court. 

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ALSO READ: Tax Slap On Delta Corp Wipes Out ₹700 Crore From Its Market Cap

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Gameskraft has been battling the tax demand of ₹21,000 Crore for GST evasion. Here, the Supreme Court overturned the Karnataka High Court’s decision to quash the tax notice. Delta Corp, the gaming and hospitality giant also received a tax notice of ₹16,821.

Coming back to Nazara Technologies, the company reportedly said in a filing, “Due to unforeseen events beyond the company’s control, there has been a delay in receiving the proceeds from the export of services.” 

“However, there is no indication to suggest that the company will not eventually receive the entire export proceeds.” As per news reports, Nazara Technologies will be responding to the tax notices within the set timelines. 

Just recently, Nazara Technologies made headlines when Zerodha’s founders Nikhil and Nithin Kamath reportedly invested ₹100 Crore in the firm. 

When it comes to online gaming, casinos and horse racing, the 28% GST levy will come into effect from 1st October 2023.

For more news and updates, keep reading Gutshot Magazine or follow us on our social media handles. We are present on Facebook, Instagram, Twitter, and Telegram.

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