As many as 71 show-cause notices have been issued to online gaming companies between the financial years 2022-23 and 2023-24 (ending October 2023) involving goods and services tax amounting to Rs 1,12,332 crore.
The information was provided by Finance Minister Pankaj Chaudhary on Tuesday while responding to a question from Rajya Sabha member Sushil Kumar Modi on tax evasion.
“As these notifications are pending for adjudication, the corresponding GST requirements have not been determined as per the provisions of the CGST Act, 2017,” Chaudhary said. He further said that no overseas online gaming company has been registered in the country since October.
The background of his remarks is that from October 1, online gaming companies will impose a 28% goods and services tax. According to regulations, overseas gaming companies operating in India must register in India to pay goods and services tax. The Directorate General of GST Investigation has also cracked down on many companies for defaulting on overdue payments. Notices have been issued to companies such as Dream11 and Games24x7, while the Supreme Court is hearing a case on the payment of Rs 21,000-crore GST notice to Gameskraft.
Meanwhile, the tax authorities detected tax evasion amounting to Rs 151 crore between April and October 2023 and have recovered Rs 18,541.38 crore and arrested 154 tax evaders.
In all, the tax authorities detected Rs 446 crore of GST evasion between FY2020 and FY24 (ending October 2023), of which Rs 107 crore has been recovered and realized.
Meanwhile, in response to another question, Finance Minister Nirmala Sitharaman said that during the special operation against fake registrations, a total of 21,791 entities without GST registration were found to be involved in tax evasion 240.1 billion rupees.
These include 11,392 entities falling under the tax jurisdiction of the state, involving an amount of Rs 8,805 crore, and 10,399 entities falling under the jurisdiction of the CBIC, involving an amount of Rs 15,205 crore, suspected of tax evasion.
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