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RMG Brands Slapped With GST Evasion Notices

The Directorate General of GST Intelligence (DGCI) has reportedly sent notices to online real money gaming (RMG) companies for alleged evasion of the goods and services tax (GST). As per media reports, about 80 online gaming companies have been issued tax notices for alleged GST evasion. Let’s have a look at these major companies that have received the DGCI notice. 

Dream11

Recently, Harsh Jain, owned fantasy sports platform Dream11, received a GST notice of ₹40,000 Crore, which makes it possibly the largest indirect tax notice served in India. The parent company, Dream Sports, has taken the legal route and filed a petition with the Bombay High Court. They have challenged the show cause notice, which was issued for alleged GST evasion by the tax authorities. 

This news came as a double blow for companies who already have to deal with the change in GST rates that is set to be effective from 1st October 2023. The online gaming industry will see 28% GST being imposed on full value of deposits made by the players. 

Latest Update: Dream11 will be waiting to hear from the Bombay High Court following their petition. 

Gameskraft

The Bengaluru-based online gaming company Gameskraft was slapped with a ₹21,000 Crore notice in September 2022. However, it was later quashed by the Karnataka High Court after the revenue department challenged the court’s decision. However, the firm faced a major blow in September 2023, citing the latest decision of the Supreme Court.

Latest Update: Supreme Court has stayed the ₹21,000 Crore GST notice Gameskraft was issued by DGCI. 

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

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Delta Corp 

Delta Corp reportedly received a tax notice worth ₹16,822 Crore from DGCI on 22nd September. The tax notice was issued as a charge for interest and penalty for allegedly not paying GST during the period of July 2017 and March 2022.

This tax notice was a very hard blow to the brand as it saw the company’s shares hit a new low and slip by 15% from its previous close. According to the company, the brand is set to pursue legal remedies available and challenge the tax notice. It remains interesting to see how the future unfolds for Delta Corp in the coming days.

Latest Update: Delta Corp is to hear from the courts following their petition. 

India’s Union Finance Minister Nirmala Sitharaman is set to make a comprehensive review of the new GST bill after six months of the implementation. It remains interesting to see if the Central government makes any amendments to the bill.

For more news and updates, keep reading GutshotMagazine.com. Follow us on Facebook, Instagram, Twitter, and Telegram.

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