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GST Intelligence imposes the highest show-cause notice of tax on Gameskraft Technology worth of Rs. 21,000 crores

Gameskraft Technology, a gaming company situated in Bengaluru, has been charged with failing to pay GST totaling Rs 21,000 crore between 2017 and June 30, 2022. According to sources, Gameskraft now holds the unpleasant distinction of having received the largest indirect tax show-cause notice in history from the Directorate General of GST Intelligence (DGGI).

A group of gamers founded Gameskraft in 2017, which offers real-money online and mobile Rummy Culture, Gamezy, and Rummy Time games where players can place bets. The corporation has also been charged with promoting online gambling “via card, casual, and fantasy games like Rummy Culture, Gamezy, Rummy Time, etc.,” according to the report.

Additionally, GTPL was discovered to have failed to send its clients any bills. According to the allegation, GST inspectors levied 28 per cent in taxes on bets totaling approximately Rs 77,000 crore. The tax authorities stated that “GTPL was engaged in betting by permitting its players who place bets in the form of money on the outcome of card games played online.”

The gaming platform submitted fake or backdated invoices during the investigation, which was discovered by forensic examination, according to the report. It also stated that the company was encouraging its customers to bet because there was no way to get their money back once it had been added to their wallet.

Later, in relation to the show-cause notice, Gameskraft released a comment. “As a responsible company with unicorn status in the online skill game market, we have paid off our GST and income tax debts in accordance with long-standing industry custom. Since the authorities have sought to apply the 28% tax applicable to games of chance and lotteries rather than the 18% applicable to online platforms of games of skill, we are confident that we will be able to respond to this notice to the complete satisfaction of the authorities,” a spokesperson for the company stated.

Ahir Mitra
Ahir Mitra

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